Doing Business in DC Guide

DC Doing Business
Guide 2012
The Washington, DC Economic Partnership would like to acknowledge our corporate
sponsors whose continued financial support has made the DC Doing Business
Guide 2012 Edition possible.
PUBLIC SECTOR PARTNERS
Vincent C. Gray, Mayor
PRIVATE SECTOR PARTNERS
DC Doing Business Guide 2012 Edition
A resource guide to start or expand your business in Washington, DC
a publication of the
About this Guide
The DC Doing Business Guide is an updated and improved version of the fifth edition
released in 2010. The new guide covers information essential to relocating, starting
and expanding your business in DC. Whether you are an existing business looking to
relocate to DC, an entrepreneur looking for some guidance on starting a business in
DC or a DC-based company looking to understand local business resources, you will
find the guide to be an indispensable tool.
As your first point of contact for doing business in DC, the Washington, DC Economic
Partnership (WDCEP) has a variety of resources in addition to this publication that
can assist you in your business success. To find out more about what we can do for you,
please call the WDCEP at 202.661.8670 or visit www.wdcep.com.
Content for this publication was made possible through collaboration with several
District and federal agencies, including: the Department of Small and Local Business
Development, the Department of Consumer and Regulatory Affairs, the Department
of Insurance, Securities and Banking, the Office of the Deputy Mayor for Planning
and Economic Development, the U.S. Small Business Administration, the DC Office
of Tax and Revenue, the Department of Employment Services, the DC Chamber
of Commerce Foundation, the Women’s Business Resource Center, the Washington
Area Community Investment Fund, the Greater Washington Hispanic Chamber of
Commerce, and the DC Small Business Development Center Network.
DC Doing Business Guide is a publication of the Washington, DC Economic Partnership.

This document is intended to serve as a guide to starting a business and doing
business in the District of Columbia. It is not intended to supplant legal or financial
advice. Although every attempt was made to ensure the quality of the information
contained in this document, the Washington, DC Economic Partnership makes no
warranty or guarantee as to its accuracy, completeness or usefulness for any given
purpose.
This publication was funded by a grant from the Department

of Small and Local Business Development.
Contents
chapter 1
Starting a Business in DC . . . . . . . . . . . . . 7
chapter 2
Business Registration & Licensing . . . . . . 15

chapter 3
Business Financing . . . . . . . . . . . . . . . . 23
chapter 4
Business Taxes . . . . . . . . . . . . . . . . . . . 33
chapter 5
Financial Incentives . . . . . . . . . . . . . . . 39
chapter 6
Finding Talent & Labor Laws . . . . . . . . . . 47

chapter 7
Business Insurance . . . . . . . . . . . . . . . . 57
chapter 8
Starting a Franchise . . . . . . . . . . . . . . . 67
chapter 9
Starting a Nonprofit Organization . . . . 73

chapter 10
Doing Business with Government . . . . . . 79

chapter 11
Marketing Your Business . . . . . . . . . . . . 89

chapter 12
Technology Company Resource Guide . . . 95

chapter 13
Business Resources . . . . . . . . . . . . . . . 105

Why Choose DC
“ Small businesses are the economic drivers of the

District of Columbia. I support the small business
community in every way and will continue to work with
them to create a more business-friendly environment.
The Washington, DC Economic Partnership’s DC Doing
Business Guide provides an excellent blueprint for
retailers, investors and entrepreneurs — creating the
“
necessary opportunities for One City to prosper.
— Vincent C. Gray, Mayor, District of Columbia
Why Choose DC?

The District of Columbia is a world-class capital city that will guarantee unparalleled
opportunities to small and large businesses and organizations. More than a political and
cultural center, DC is also a business capital that is experiencing an unprecedented
renaissance as one of the fastest growing and most exciting economies in the country.
Choosing to locate your business in DC will ensure advantages that are unmatched by
any other city. Over the past few years, the District of Columbia’s economy has proven
to be strong and resilient while major events and cycles have shocked the rest of
the nation. DC is well established for industries such as business services, nonprofits,
law firms, hospitality, technology and an increasingly vibrant retail market. The na-
tion’s capital has the tools, the infrastructure, the workforce, the accessibility, and the
climate for businesses to flourish.
Workforce
The District of Columbia boasts a highly skilled workforce and a strong job market. There
are 617,996 people living in DC of which 49.2% have a bachelor’s degree or higher1. The
average household income for DC residents is $89,000 2. Despite the recent economic
downturn, the job market has proven to be strong and resilient. The DC metropolitan
area unemployment rate has remained well below the national average, having dropped
0.6% in the past year3. The job market is currently employing approximately three million
workers and is expected to add new employment opportunities in the near future4.
1 US Census Bureau (2010)

2 US Census Bureau
3 Delta Associates (2012 Trendlines)
4 © 2012 Washington, DC Economic Partnership

Why Choose DC
Transportation
The District of Columbia’s public transportation system is highly efficient with the 2nd
largest heavy rail network and the 6th largest bus network in the United States. Not
only do people rely on the Metro system to commute to work everyday, they also use
it to explore the city’s many attractions. In 2011, there were a total of 341.2 million
trips taken by riders5. The average commute time for residents is 29.3 minutes6.
Development
The District of Columbia serves as a leader in the national real estate market. There
is a total of 7.0 million square feet of office space under construction or renovation in
the metro area, as of December 20117. There are also more than 349 planned or pro-
posed projects that amount to $41.4 billion in development. Additionally, DC sets a
national and global example of how to achieve sustainable development by creating
policy and achieving a record number of LEED certified projects.
Industries and Occupations

The top industries in the Washington Metro Area are Professional/Business Services,
Government, Education/Healthcare, Leisure/ Hospitality, and Retail Trade. The
top three sectors leading job growth include Professional/Business Services, Leisure/
Hospitality, and Financial Services8. The District of Columbia is a dynamic city with
genuine and unique business opportunities. DC’s economy has proven to be strong
and resilient, despite the recent economic downturn, and is an ideal location to
start, expand or relocate your business.
5 Washington Metropolitan Area Transit Authority

6 US Census Bureau
“ Whether your organization employs five people or

500, Washington, DC is an outstanding business
location. With easy access to transit, workforce,
and urban amenities, businesses in the District are
poised to succeed. This administration partners with
employers in all parts of the city, and we hope this
guide serves as a valuable resource to help your
“
enterprise grow.
— Victor L. Hoskins, Deputy Mayor for Planning and
Economic Development, District of Columbia
DC Doing Business Guide 2012 5

Starting a
1
Business in DC
Business Planning, Business Locations, Ownership Structure
Contributors: Washington Area Community Investment Fund | DC Chamber of Commerce Foundation |
Minority Business Development Agency Business Resource Center
Whether you are starting a new business or relocating

an existing one, you will need to know the requirements
to operating a business in the District of Columbia. If
this is your first business venture in our nation’s capital,
there are a number of factors that you should consider.
This chapter will take you through the basic steps of
starting a business in DC.
Business Planning WDCEP on YouTube

Developing a business plan is crucial to success. A well-written business plan can help Search Starting a Business in DC
secure funding, market your products and services, and help to establish strategic at www.youtube.com/wdcep1495
partnerships. While there are different ways of writing a business plan, there are a few
essential components that should be included in every business plan.
The three main sections to any business plan are:
Description of Business
This section of your business plan should contain the “who, what, when, where, why
and how” of your business. Some relevant points include location, products and
Starting a Business in DC
services, employees, management structure, labor policies, and other general infor-
mation about your business.
Market Analysis
This section of your business plan should include demographic information about your
customers, how you plan to reach them, information about potential competitors, tim-
ing of and barriers to market entry, your marketing budget, and advertising plan.
Financials
Basic Steps of Starting a This section of your business plan should include your balance sheets, cash flow pro-
Business
jections, income statements, and break-even analysis. You will need to articulate all of
Know Your Business What are you sell-
ing? Who are your customers? Who is your expenses and revenues by month and by year for a five-year time period.
your competition?
Additionally, business plans should always include a cover sheet and an executive
Write a Business Plan How will your summary that provides an overview of your entire plan. For more in-depth information
business make money? How will you on how to write a business plan and examples of business plans in various industries
finance your business?
please visit www.bplans.com.
Find a Location Where are your cus-
tomers? Where will your business oper-
ate? How much space you need? What
Assistance for Business Planning
are the zoning requirements? If you would like to work with an experienced counselor to help develop your busi-
ness plan, we recommend that you contact one of several resource centers in DC.
Make Your Business Legal What busi- These resource centers provide comprehensive business start-up assistance including
ness structure will your company have?
business planning and marketing, and include:
What kind of licenses do you need?
What tax forms do you need?
U.S. Small Business Administration’s SCORE
Get Financing Will you need a loan? The U.S. Small Business Administration (SBA) is a federal agency devoted to helping
Do you qualify for a loan? What are the small businesses. It has both resource centers and counselors to assist you with
sources for financing? What financial
starting and growing your business. At the SBA’s Service Corps of Retired Executives
incentives are available?
(SCORE), counselors can provide mentoring, training, and advice for both start-ups
and existing businesses.
202.272.0390 | www.scoredc.org
DC Chamber of Commerce: Business Resource Center

The DC Chamber of Commerce Business Resource Center helps emerging and estab-
lished businesses navigate through the processes for business plan review, permits,
and certifications. The Business Resource Center offers support services and training
WDCEP Tip designed to expand the capacity of small businesses in the DC area.
Please refer to Chapter 13: Business 202.545.0220 | www.dcchamber.org
Resources for more information on
each of these resources.
Minority Business Development Agency (MBDA)
Business Center
The MBDA Business Center in Washington, DC consults with established Minority Busi-
ness Enterprises (MBEs) in the National Capital Region and throughout the United
States to increase their access to contracting opportunities and financing. The Center
is operated by the National Community Reinvestment Coalition and funded by the
Minority Business Development Agency, U.S. Department of Commerce. The Center is
committed to increasing the economic performance of its MBE client base.
202.482.2332 | www.mbda.gov

Business Planning, Business Location, Ownership Structure
Small Business Development Center

The DC Small Business Development Center (DCSBDC) network provides business
counseling and marketing resources.
202.806.1550 | www.dcsbdc.org
Washington Area Community Investment Fund

The Washington Area Community Investment Fund, Inc. (WACIF) is a 24-year-old
nonprofit community development loan fund. WACIF provides access to capital and
technical assistance services to existing and aspiring entrepreneurs and to nonprofit
organizations in local underserved communities. WACIF’s programs and services in-
clude: Specialized Technical Assistance, the District of Columbia Certified Business
Enterprise Revolving Microloan Fund, the Small Business Administration (SBA)
Revolving Microloan Fund, and WACIF’s Access to Capital Loan Fund.
202.529.5505 | www.wacif.org
Business Location
One of the first concerns when starting a business is deciding where to locate your Please note
business. Your business location choice is integral to determining if you qualify for In the District of Columbia, you are
certain government incentive programs (see Chapter 5: Financial Incentives), your required to have a business location
accessibility to your target market, your ability to attract and retain employees, and submit a certificate of occu-
pancy permit when applying for your
and the type of occupancy permit you will need. You will be required to have a busi-
business license.
ness location and submit a Certificate of Occupancy or Home Occupation Permit
when applying for your business license at the DC Department of Consumer and
Regulatory Affairs.
Site Considerations
Important factors to consider when choosing a location for your business:
How accessible is your proposed location?
• Will it be accessible to your potential clients?

• Is parking nearby? Is there a significant amount of foot traffic?
• Are you near a Metro station, bus stop, or major intersection?
Is the price right?
• How much revenue will you require to cover your lease?

• What amenities are included in your lease?
• Will you have to build-to-suit; will the landlord outfit the space or provide funds
for tenant improvements?
Does the site meet your requirements?
• Is the space zoned for your type of business (i.e., industrial, residential, commer-
cial or mixed-use)?
• Will you require loading bays? Do you need elevators?
Do you want to operate your business from home?
• What amount of savings do you anticipate to have from operating a home-based

business?

• How will you be able to reach your clients?

• Will you be able to run your type of business from home?
If you operate your business from a residential property, you will need to obtain a
Home Occupation Permit (see Chapter 2: Registration & Licensing). In addition,
there are also restrictions on the number of employees you can have in a home-
based business and how many deliveries or customers can come to your home
each day.
Helpful Resources Assistance with Choosing a Location

For free demographic information If you plan to operate your business in a commercially leased property, you may con-
about the area surrounding your busi- tact one of the following organizations to identify resources that best fit your needs:
ness, contact the Washington, DC
Economic Partnership at 202.661.8670 Washington, DC Economic Partnership
or online at www.wdcep.com.
The Washington, DC Economic Partnership (WDCEP) can provide you with broker con-
tacts, information on vacancy rates, asking rents, and demographic information about the
areas surrounding your business. The WDCEP can also provide you with information on
available office and retail space in neighborhoods or new development projects.
202.661.8670 | www.wdcep.com
Brokerage Firms & Real Estate Service Companies

You may directly contact a commercial real estate broker representing tenants for your
space search. Brokerage firms offer a variety of services including but not limited to
Download the DC Neighborhood investment advice, real-time quotes, research, investment information and tools, online
Profiles trading, touch-tone trading, website account access, check-writing privileges, and mar-
gin loans. Generally, tenant broker services are provided at no charge to the prospec-
tive business.
Community Development Corporations

Community Development Corporations (CDCs) in the neighborhood of your choice
can assist you with information on neighborhood properties.
www.brc.dc.gov/incentives/community.asp
DC Building Industry Association

The DC Building Industry Association (DCBIA) can refer you to their member brokers
depending on your needs.
202.966.8665 | www.dcbia.org
Department of Small & Local Business Development

The Department of Small & Local Business Development’s (DSLBD) Office of Com-
mercial Revitalization provides site location assistance for retail ventures.
202.727.3900 | www.dslbd.dc.gov
Greater Washington Commercial Association of REALTORS®

The Greater Washington Commercial Association of REALTORS® (GWCAR) can pro-
vide you with a listing of real estate brokers in the region.
301.590.2000 | www.gwcar.org

Need site locatioN
assistaNce?
use WdCep’s retail site searCh
Find storefronts for rent or sale using size, location,
proximity to Metrorail or timeframe.
Learn more at wdcep.com

Comparison of Ownership Structures
Sole Proprietorship Disadvantages

Advantages • A sole owner cannot set up an LLP as a partnership; an LLP
• Easiest and least expensive to set up must have at least two partners to exist
• Full control over all business decisions
• Minimal legal restrictions or requirements C (General) Corporation
Advantages
• Owns all profits and reaps all benefits
• Has a lifespan independent from its owners (stockholders)
• Not required to pay unemployment taxes
• Fringe benefits costs are tax-deductible
Disadvantages
• Personal assets are protected from business liability
• Personally liable for all business transactions
• Ownership can be transferred through the sale of stock
• May have difficulty obtaining long-term financing
• Easy to raise operating capital through the sale of stock
• No unemployment benefits if the business fails
• Ownership can change without affecting daily management
• Limited tax savings
Disadvantages
• Incorporating involves considerable start-up expenses
General Partnership
Advantages • Subject to more District and federal legislation
• Easy to establish • Corporate earnings subject to double taxation
• Partners share workload and responsibilities • Many legal formalities exist when filing corporate status
• Financing is easier to obtain than for a sole proprietorship • Activities are limited
• The partners share all profits and reap all benefits of ownership
Disadvantages S Corporation
• May be more expensive to start Advantages
• Already exists as a corporation
• Partners have unlimited liability for business expenses
• Corporate earnings avoid double-taxation
• Each partner is bound by the actions of the other partner
Disadvantages
• Decision-making authority is divided
• Difficult to qualify for IRS requirements
• Loss of one partner may dissolve the business
• Partnership may be difficult to end
Limited Liability Company (LLC)
Advantages
Limited Partnership • Profits and losses pass through the company to its owners
Advantages for tax purposes
• Relatively easy to establish
• Personal assets are protected from business liability
• Partners share in start-up expenses
• No limitation on the number or nature of owners
• Financing is easier to obtain than for a sole proprietorship
• Easier to operate than a corporation
• Partners share all profits and reap all benefits of ownership
• Not subject to corporate formalities
• Partners’ assets are not at risk from creditors
• Owners may participate in management of the business
Disadvantages
Disadvantages
• More expensive to set up initially due to the requirement
• Legal assistance is needed to properly set up and structure
for a written agreement
• Professionals—such as lawyers, accountants, and doc-
• Operating (general) partner has unlimited liability for expenses
tors—are prohibited from registering as an LLC
• Loss of one partner may dissolve the business
• Partnership may be difficult to end Nonprofit
Advantages
Limited Liability Partnership (LLP)
• Tax exemption
Advantages
• Tax advantage of flow-through tax treatment for LLP partners • Business operation fexibility
• Simple for an existing partnership to become an LLP Disadvantages

• Merger limitations
Business Planning, Business Location, Ownership Structure
Ownership Structure WDCEP Tip

For more information on corporate
As you begin planning, you will need to consider the ownership structure of your
ownership structures in the District
business. Your business ownership structure will not only define who owns the busi-
of Columbia, visit the District’s on-
ness, but also will determine who controls it, who assumes liability, how profits are line Business Resource Center at
divided and how your business will be taxed. www.brc.dc.gov.
The list below represents eight common business types. There are, however, many
ways to set up a business, and each business is subject to its own unique tax situation.
You should consult with a qualified tax professional and a lawyer to determine the ap-
propriate structure for your business.
Sole ProprietorshipA business that is owned by a single individual.
General PartnershipA business owned by two or more persons who have agreed—
verbally or in a formal written statement—to operate a business.
Limited PartnershipA business similar to a general partnership, however, one invests

assets into the business at their own risk and is limited to the amount of capital in-
vested. The investor is not involved in management and does not share in the liability
for debts or losses.
Limited Liability Partnership (LLP)A business where partners are given the same
limited liability protection as professional corporations.
C (General) CorporationA business formed by law as a separate legal entity from its
owners (stockholders and shareholders).
S CorporationA business similar to a General Corporation, with the exception of

specific IRS requirements.
Limited Liability Corporation (LLC)An LLC is a hybrid business that draws advanta-
geous characteristics from both corporations and partnerships.
NonprofitAn organization that has no owners, gives no income (except salaries/ex-

penses) to members, directors or officers and must have a Board of Directors.
Please see the chart on the previous page for comparison information.

Businesses like Big Bear Cafe and Boundary Stone Public House in Bloomingdale worked closely with ANCs
and Neighborhood Advisory committees to obtain alcohol and patio licenses.
Business Registration
2
and Licensing
Step- by- step Explanation of the Licensing Process
Contributors The Department of Small and Local Business Development |
The Department of Consumer and Regulatory Affairs | The Alcoholic Beverage Regulation Administration
The process of obtaining licenses and registrations can

be streamlined if you know what you need and where
to find it. This chapter will help you navigate your way
through the process of business regulations.
All businesses and corporations operating in DC are required to be licensed and or
registered by the Department of Consumer and Regulatory Affairs (DCRA). Additionally,
DCRA issues permits. Within DCRA, the Business and Professional Licensing Admin-
istration issues business and professional licenses and registers corporations. Walk-in
customers are welcome to visit DCRA’s Business License Center. The Business License
Center serves walk-in customers that wish to file corporate documents, apply for vari- WDCEP on YouTube
ous licenses, or need filing applications. The Permit Center is responsible for issuing Search Business Registration and
Licenseing at www.youtube.com/
construction, plumbing, electrical, and HVAC permits in the District of Columbia. Both
wdcep1495
centers provide face-to-face technical assistance which aids residents and businesses
within the District of Columbia.
Please visit DCRA’s website to view services offered:
• Registration forms and documents

• Answers to frequently asked questions
• Business name availability tool
Business Registration and Licensing
Visit The Department of • Registered organization search

Consumer and Regulatory • Corporate online formation services, report filings, name reservation and trade
Affairs (DCRA)
name filings and status certificates ordering
1100 Fourth Street SW
Washington, DC 20024 If you would like to operate in the District of Columbia as a nonprofit, for-profit cor-
202.442.4400 | dcra@dc.gov | @DCRA
poration, limited liability company, limited partnership, limited liability partnership,
Metro: general cooperative association, limited cooperative association or statutory trust,
Closest stop is Waterfront on the Green you must register with the Corporations Division of the Department of Consumer and
Line Regulatory Affairs.
Hours of Operation:
To register as a domestic company, you must file for articles of incorporation (for-
Monday, Tuesday, Wednesday and
profit or nonprofit corporations), articles of organization for Limited Liability Company
Friday from 8:30 am–4:15 pm; Thursday
from 9:30 am–4:30 pm or statement of qualification for partnership.
To register as a foreign company (if your business is already registered outside the
District of Columbia), you must file for certificate of authority (for-profit or nonprofit
corporations) or certificate of registration for a Limited Liability Company.
DC Department of Consumer and Regulatory Affairs

202.478.9292 | @DCRA | www.dcra.dc.gov
The Licensing Process Step-by-Step

7 steps to obtain your Step 1
Business license
1. Employer Identification Number
Employer Identification Number (EIN)
(EIN) An EIN (also known as Tax Identification Number (TIN)) is a nine-digit number assigned
by the Internal Revenue Service (IRS). The IRS uses the number to identify business
2. Certificate of Occupancy (CRA-5)
taxpayers who are required to file various tax returns. EINs are used by employers, sole
3. DC Business Tax Identification
proprietors, partnerships, corporations, nonprofit organizations, trusts, estates of dece-
Number
dents, government agencies, certain individuals, and other business entities.
4. Certificate of Registration
5. Clean Hands Certificate You will need an EIN if you answer “Yes” to any of the following questions:
• Do you have employees?
6. Basic Business License
• Do you operate your business as a corporation, LLC or a partnership?
7. Business Trade Name
• Do you file any of these tax returns: Employment; Excise; or Alcohol, Tobacco
and Firearms?
• Do you withhold taxes on income, other than wages, paid to a non-resident alien?
• Do you have a Keogh plan (a tax-deferred pension account)?
• Are you involved with any of the following types of organizations: trusts (except
certain grantor-owned revocable trusts), IRAs, exempt organization business
income tax returns, estates, real estate mortgage investment conduits, nonprofit
organizations, farmers’ cooperatives or plan administrators?
WDCEP Tip The quickest and easiest way to apply for your EIN is online at www.brc.dc.gov (select
For more specific information about “Start a Business”). You may also fill out a copy of IRS Form SS-4 (Application for
whether or not you are required to obtain Employer Identification Number) and apply by phone, fax or mail. This form is avail-
an EIN, you should refer to IRS Publica-
able at the IRS and Social Security Administration Offices, or you can request one by
tion 1635. You can obtain a copy of the
publication online at www.irs.gov. calling the IRS at 800.829.4933.

Step 2
Certificate of Occupancy (CRA-5) Please note
A Certificate of Occupancy or Home Occupation Permit is required to show that your In the District of Columbia, you are
business is operating in a building that meets building and zoning code requirements required to have a business
location and submit a Certificate of
for its intended use. However, you may not need one if you are leasing space in a build-
Occupancy permit when applying for
ing that already holds a Certificate of Occupancy for your intended business use. For your business license
instance, a law firm can operate under the umbrella of an office building’s Certificate of
Occupancy as long as the firm operates in a manner that conforms to office use.
Certain businesses, mostly Basic Business License applicants need to obtain a

separate certificate if the property owner’s Certificate of Occupancy does not cover
their business. It’s important, therefore, to ask the owner, property manager, or agent
about the Certificate of Occupancy when entering into a lease agreement.
To file for a Certificate of Occupancy for your business, you must either have a com-
mercially zoned business location or operate your business from home. Limited
home occupations, with standards, are permitted as an accessory use to the principal
residential use. See Section 203.1 of DCMR 11 for permitted home occupations and
limitations. You may view this section and the District of Columbia’s zoning regula-
tions at www.dcoz.dc.gov/info/reg.shtm. Applications are available from the Depart-
ment of Consumer and Regulatory Affairs or online at www.dcra.dc.gov under the
heading “Permits/Zoning.” Once completed, you will need to submit the application
in person to the Permit Service Center.
Commercial Properties Most commercially zoned properties will already have a Certifi-
cate of Occupancy. You should be able to get a copy of the certificate from the building
owner or management company. If there is not a Certificate of Occupancy, you will need to
apply for one. For more information, visit www.drca.dc.gov and choose “Permits/Zoning”
to read more about the process and to obtain a Certificate of Occupancy checklist, ap-
plication, and other supplemental forms that may be required.
Home-Based Properties Pursuant to DCMR Title 11 Zoning Regulations, if you own

and live in your home and use this residency as your primary business location, you
must file for a Home Occupation Permit (HOP). There are limitations however as you are
only allowed to use the greater of either 250 square feet or 25% of the floor area of the
structure, excluding the basement or any accessory structure, for your business opera-
tion. It is wise to check zoning regulations regarding all home-based businesses before
applying for a HOP.
Step 3
DC Business Tax Identification Number
The FR-500 is a DC Combined Business Tax Registration document used to provide
information on ownership, location, and type of business, which is needed to make a
determination of an employing unit’s liability to pay unemployment taxes.
Once you complete the document and submit it to the Office of Tax and Revenue,
you will be provided with a notice of business tax registration indicating your tax
obligations and filing frequency. This will also be the basis for your unemployment tax
registration with the Department of Employment Services.

If you are an employer with one or more employees performing services within the
District of Columbia, you are liable for unemployment taxes under the District of
Columbia Unemployment Compensation Act. This includes services performed on
a part-time or temporary basis. Employers of household help are also liable if they pay
WDCEP Tip at least $500 in aggregate wages in any calendar quarter for such help. Persons
Tax forms can be accessed online at considered household employees include chauffeurs, cooks, gardeners, nurses, maids
www.otr.cfo.dc.gov. For more informa- and baby-sitters who are at least 18 years of age.
tion call the Office of Tax and Revenue
at 202.727.4TAX. Employers with one or more employees performing services within the District of
Columbia, as described in the preceding paragraph, must complete Part VI of the
Combined Registration Application (FR-500). If the form is completed online at the
Office of Tax and Revenue’s website (www.cfo.dc.gov/otr) Part IV will automatically be
forwarded to the DC Department of Employment Services (DOES).
You will be contacted by DOES if necessary and provided with a determination of tax
liability. If FR-500 is not completed online, Part IV should be submitted to:
DC Department of Employment Services,

WDCEP Tip Office of Unemployment Compensation, Tax Division,
Requirements for license and permit 4058 Minnesota Avenue, NE | Washington, DC 20019
fees vary greatly according to the type 202.724.7000
of companies’ ownership structure.
For more information on DC licenses The withholding and submission of employer withholding tax is optional for house-
and permit fees, to obtain a Clean Hands
hold employees. If you choose to withhold, you should complete the Combined
Certificate, or to register a trade name,
Registration Application (FR-500), as mentioned above.
please visit the Department of Con-
sumer and Regulatory Affairs (DCRA) at:
www.dcra.dc.gov. Step 4
Certification of Registration
You will receive a Certificate of Registration from the Office of Tax and Revenue once
you file your FR-500.
Step 5
Clean Hands Certificate
The Clean Hands Certificate is an affidavit stating that you do not owe more than
$100 to the District government. If you owe more than $100 to the District govern-
ment, you will need to resolve the outstanding debt before you can proceed.
A Clean Hands Certificate is required to be submitted with any application for a

license or permit, including a Basic Business License (see “STEP 6” below). The form
is included in the Basic Business License application packet.
Step 6
Basic Business License (BBL)
The Basic Business License, renewed every two years, carries an endorsement for
each activity that requires city oversight. A BBL is needed if a business or nonprofit
requires city approvals, inspections or investigations. These rules apply if you transact
businesses in the District, even if your business is not located in the city.

Step 7
Trade Name Registration
The District of Columbia enacted legislation establishing a registration program for
trade names. This law benefits the business community by:
• Allowing businesses to use fictitious names (created words and names) in conduct-
ing business, including transacting business with vendors and financial institutions
• Providing an official record of all owners associated with a fictitious name
• Allowing businesses with fictitious names to undertake legal action under that name
You can register your trade name online at www.dcra.dc.gov as an individual or orga-
nization, by using the “CorpOnline” link from the main site.
Trade Name Registration Form TN-1 is also available by accessing DCRA’s website
and navigating to Licensing and Registration and Corporate Registration, then by
clicking on the appropriate entity type. You may opt to obtain a trade name at any
step in the process.
Other Licenses & Permits

Building Permits WDCEP Tip
You are required by law to obtain a permit for construction in the District of Columbia Businesses can now apply for per-
if you are going to be constructing, renovating or altering your building, home or leased mits online via DCRA’s website. Go to
premises. You may apply for permits in the Permit Service Center of the Department www.dcra.dc.gov and click on online
permit application. You can also file your
of Consumer and Regulatory Affairs.
construction permit online.
Please note that other agencies (e.g. Department of Health, the District Department
of Transportation and DC Water) are tied into the permitting process and have
their own respective approval requirements. If you need further assistance, or
have multiple permits, contact the DCRA, Building Permit Customer Service Sec-
tion at 202.478.9292.
You need a permit for:
• New construction and foundations

• Additions, alterations, or repair of existing buildings
• Razes (demolition), interior or partial demolition
• Erection of a sign and awning
• Layout of interior space for tenants in new or existing commercial buildings
• Change of use
DCRA | Building Permit Customer Service Section | 202.478.9292 | www.dcra.dc.gov

(Search “DCMR Title 12 Chapter 1” online for the entire list of required permits.)
Building Plats
Building plats—drawings showing the location of all property lines—are required as the
basis for all additions and new buildings. An original and three copies can be obtained on
a fee basis from the District Office of the Surveyor. You are encouraged to place your or-
der a minimum of seven days in advance; although an expedited plat service is available.
Plats show lot lines but do not show improvements which must be added by applicant.

Plats are required for the following types of work:
• New buildings, additions

• Retaining walls, fences
• Sheds, garages
• Awnings
Site plans are required for:
• New buildings, additions, interior and exterior alterations

• Retaining walls, sheds, garages
• Excavation for foundations
Public Space Permits

A Public Space Permit is required to use or install structures on public space—the
area between the building or property line and the curb (restaurants with outdoor
sidewalk seating will need to apply for the Sidewalk Café Permit). You are required to
complete an application for Public Space Permits in order to:
• Construct sidewalks, alleys, flagpoles, fountains, planter boxes, retaining walls,

fences, and any other improvements in public spaces
• Excavate in public space to construct foundations
• Occupy public space temporarily for construction equipment
Water or Sewer Excavation Permits

You must complete an application for Water or Sewer Permits to:
• Install water or sewer pipes

• Make connections to existing water and sewer mains in the street
• Excavate for water meters and meter vaults in public space
Supplemental Systems Installation Permits

The SBRC Network of Licensed contractors are required to complete an application for Supplemental
Centers locations Systems Permits in order to install:
Department of Small and Local
Business Development • Air conditioning and refrigeration
Small Business Resource Center • Plumbing fixtures
441 4th Street NW, Suite 970N
• Electrical fixtures
Washington, DC 20019
202.727.3900
Floor plans, elevations, cross-sections, and detailed drawings are required in various
Department of Consumer and combinations for all proposed construction, except for razes. You will need a building
Regulatory Affairs permit before submitting supplemental plan permits. Permits for simple projects can
Small Business Resource Center be issued over the counter in half an hour, while more complex projects may require
1100 4th Street SW, 2nd Floor
from 14 to 30 days for completion of reviews.
202.442.8170
Services are by appointment only. To

Small Business Resource Center (SBRC)
register for SBRC offerings, please visit The Small Business Resource Center (SBRC), a partnership between the Department
dcbiz.ecenterdirect.com. of Small and Local Business Development (DSLBD) and the Department of Con-
sumer and Regulatory Affairs (DCRA), provides District-based small businesses and

entrepreneurs with training, consulting and technical assistance. Service offerings

include one-on-one technical assistance; pro-bono legal services; access to comput-
ers and business planning software; workshops on starting, managing, financing, and
growing a business; and assistance navigating regulatory issues. The SBRC also
provides regular updates about small business opportunities and referrals to other
small business resource providers in the area.
Alcoholic Beverage Control Licensing

The Alcoholic Beverage Regulation Administration (ABRA) issues licenses to qualified
applicants to serve or sell alcoholic beverages; monitors compliance with the law and
regulations; and takes appropriate enforcement action when a business violates DC
alcoholic beverage laws. ABRA implements new laws regulating the manufacturing,
distribution and sale of alcoholic beverages in the District.
ABRA operates under the authority of a seven member Alcoholic Beverage Control
(ABC) Board that sets parameters for the agency. ABRA is an independent DC gov-
ernment agency.
There are several classes of ABC licenses. Requirements for licensure vary greatly ac-
cording to the type of establishment planned. We recommend that you consult with
an ABRA representative to first determine the type of license application needed, as
determined by the proposed activities of the establishment. Additionally, we recom-
mend that you discuss your proposed location with an ABRA representative to ensure
that a license for your location is not prohibited by an existing ABC license morato-
rium. Once your license is approved, your establishment and/or location are consid-
ered Board approved.
To file for an ABC License:
1. Consult “Quick Facts” and the “ABC Licensee Handbook” online or call an
ABRA representative to determine the type of license application needed
2. File for a DC business tax number at the Tax Registration Counter in the One
Stop Business Center of the Office of Tax and Revenue
3. Submit required application(s)
4. Await a 45-day placard period
Additionally, the Board is authorized to conduct a background investigation including

a criminal history record check on the applicant. A routine application, with no pro-
tests, will take approximately twelve weeks for approval, including the 45-day placard
period and final inspections.
202.442.4423 | www.abra.dc.gov

Business Financing
3
Factors of Consideration, the Loan Process, Small Business Lenders,
Equity Financing and Other Sources of Funding
Contributors The Department of Small and Local Business Development |
The Department of Insurance, Securities and Banking | The U.S. Small Business Administration
Most businesses need outside sources of financing to

get established or to expand. As a world-class financial
center, DC has many banking and financing institutions
that can help a business meet its financing needs.
Your funding options include:
• Obtaining a bank loan

• Working with a lender to get a loan guarantee from the U.S. Small Business
Administration (SBA)
• Securing funds from an angel investor, venture capital firm, or small business WDCEP on YouTube
investment company (see Chapter 12: Technology Company Resource Guide). Search Business Financing at
www.youtube.com/wdcep1495
The DC Department of Insurance, Securities and Banking (DISB) promotes the
availability of capital for small businesses. In 2004 a new small business develop-
ment financing program administered by the DISB called the Certified Capital
Company (CAPCO) Investment Program was introduced in order to increase pri-
vate capital investment into DC’s new or expanding small businesses (see page
30 for more information).
Business Financing
Factors of Consideration
In order to determine how much financing you will need and is available to you, you will
need to assess your current resources, complete your financials, and obtain a credit report.
Your Current Resources

Depending on your start-up and growth strategies, it is advisable that you consider
exhausting your current resources before turning to outside financing. These resourc-
es include savings, credit cards, and loans from family members and friends.
Your Financials
The financial section of your business plan is a critical component for attracting inves-
tors and securing funding. You may use the online financial tools provided by the
District of Columbia Government’s Business Resource Center at www.brc.dc.gov to
gain a solid understanding of your financial position and related goals.
Your Credit Report

WDCEP Tip Regardless of whether you are going to rely on your current resources or obtain com-
The Fair and Accurate Credit Transac- mercial financing, you will need to obtain a copy of your credit report to ensure its
tion Act (FACTA) was passed by Con- accuracy and show potential investors that you are serious about paying back their
gress in 2003 and allows you to obtain investments.
one free copy of your credit report from
each of the three major credit bureaus You may obtain credit reports online or via phone by contacting one of the following
every 12 months. For more information,
companies:
please visit www.fdic.gov and search
for “FACTA.” Equifax
1.800.685.1111 | www.equifax.com
Experian
1.888.397.3742 | www.experian.com
TransUnion
1.800.888.4213 | www.transunion.com
The Loan Process

The Five C’s of Credit The best way to get a loan is to work with a bank or lending company. These experts
Capital: How much of your own funds will help you decide which type of loan suits your business. Their advice is valuable
are invested in this business and learning about loan types and processes yourself will supplement your knowl-
Capacity: your ability to repay the loan edge to help you make the best decision.
(this is where your credit report will be
crucial) Applying for a Loan
If you decide to apply for a business loan, your application should include the follow-
Collateral: Assets, such as real estate,
ing information, much of which will be included in your written business plan:
equipment or inventory that can be liq-
uidated to repay the loan if you default
• A description of your business: products or services, market, competitive
Conditions: How you plan to use the advantages
loan • A biography with a summary of qualifications (many applicants simply provide
Character: The general impression of resumes of key managers)
trust-worthiness you make on the pro- • A budget detailing how the funds will be used
spective lender or investor

still have
questioNs?
JoiN the WdCep MoNthly For a
live versioN oF the dC doiNg
busiNess guide.
DoingBusiness2.0
attend the series of seminars to get advice from experts and
entrepreneurs that have already gone through the process.
hear from regional university faculty members, gain access
to dC officials, specialists from business resource centers,
venture capitalists and more.

Business Financing
• A statement of your equity injection—your personal contribution. If possible,

this should be 20% of the total budget. The remainder is the amount of the
requested loan.
• Business financial statements and tax returns for the last three years, if applicable
• Cash flow projections for at least the next 12 months
• Personal financial statements and three years of tax returns for each owner of the
business
consider Local lenders
The Department of Small and Local • A description of the collateral being offered, in addition to business assets, which
Business Development often include personal assets such as marketable securities or real estate
441 4th street, NW, Suite 970 North
Washington, DC 20001 The lender will evaluate all of this information before making a decision. In some cases,
www.dslbd.dc.gov the application is not quite strong enough to stand on its own. This is often true of start-
up businesses or in cases where the collateral is insufficient or the equity injection is too
Enterprise Development Group
1038 South Highland Street small. In those cases, the lender will sometimes agree to make the loan only with the
Arlington, VA 22204 guarantee of the U.S. Small Business Administration (SBA). The lender will guide you
703.685.0510 | www.entdevgroup.org through the process and additional paper work involved in obtaining the SBA guarantee.
Types of Loans
Short-Term Loans
Short-term loans must be repaid within a year and are typically used to finance such
items as seasonal build-up of inventory or accounts receivable.
Line of Credit: A
line of credit is a specific amount of money that has been approved
and set aside by the bank for you to draw upon as needed. Interest is charged only on
the amount of the line that you use. However, banks may charge a commitment fee
of 0.5%–1% of the total line for reserving these funds. Lines of credit are used mostly
for construction projects.
Time Loan: There are no installment payments with a time loan. Instead, the entire
amount of the loan, plus interest, is paid back at one time. This type of loan is often
used to finance a temporary increase in inventory.
Long-Term Loans
With terms of one year and longer, these loans are typically used to finance perma-
nent assets like your core level of inventory, accounts receivable, the expansion of a
business, machinery and equipment, or construction of a new building.
Term Loan: These loans are usually repaid within five years in equal installments of
principal, plus interest on the outstanding amount of the loan. As the outstanding
principal is reduced, the amount of your total installment payments will go down over
the life of the loan.
Revolving Line of Credit: A

revolving line of credit differs from other lines of credit
because it does not require an annual payoff. Reviewed and renewed by the bank on
a yearly basis, revolving lines are similar to credit cards with pre-set spending limits.
The amount of available funds drops by the amount of money you withdraw and
increases as you repay the funds in monthly installments of interest plus principal.

Factors of Consideration, the Loan Process, Small Business Lenders, Equity Financing and Other Sources of Funding
Accounts Receivable: An accounts receivable loan is based on the payment history of
your customers. This type of loan is often used for government contracts and subcon-
tracts. Banks will either write separate loans, or set aside funds for your use, in an
amount usually 75–100% of all accounts receivable invoices that are less than 90 days
old (depending on the customer). Typically, a government contract is more reliable
than those from the private sector, so the size and length of the loan changes ac-
cordingly. Available money is drawn as needed and paid as your customers pay you.
Interest is charged only on the outstanding portion of the loan. Non-traditional Financing
Crowd-sourced funding opportunities
Commercial and Industrial Mortgages: These are typically used to finance the purchase for creative projects have become
of real property or a major expansion of the business. Depending on the property popular ways to raise capital. Kickstarter
you would like to buy or build, most banks will finance up to 75% of the property’s (www.kickstarter.com) is one of the
more popular sites to offer this service.
appraised value or construction cost in the form of a mortgage. However, commercial
loans are generally offered for ten years or less. You may be able to reduce these
monthly installment payments by basing them on an amortization period, which is
longer than the life of the loan. With this loan structure, when the loan is due, you pay
off the outstanding principal and interest with a lump sum “balloon payment.”
Personal Loans: O
wners of a start-up or new business can take out long term person-
al loans from a bank. Because there is no existing track record to evaluate, a banker
can base the loan on your personal assets and borrowing record.
Micro-loans: M
icro-loans (from $500–$35,000) are also a good source of financing. Non-
traditional lenders with less stringent financial guidelines than banks usually offer them.
They can be used for working capital, machinery, inventory and leasehold improvements.
Small Business Administration Loans

The Small Business Administration’s (SBA) Micro-loan Program provides very small
loans to start-ups, newly established, or growing small business concerns. Under this
program, the SBA makes funds available to nonprofit community based lenders (inter-
mediaries) that, in turn, give loans to eligible borrowers in amounts up to a m
aximum
of $35,000. The average loan size is about $13,000. Applications are submitted to the
local intermediary and all credit decisions are made on the local level.
7(a) Program
7(a) loans are designed to help small businesses in starting, acquiring, and expanding
their interests. The program encourages lenders to extend credit to small busi-
nesses by guaranteeing a portion of the loan: up to 85% on loans up to $150,000, and
75% on loans greater than $150,000. The maximum loan amount is $1.5 million. The
money can be used to purchase property or equipment, fund long-term or short-term
working capital, finance against inventory or refinance existing debts, and cover new
construction or expand existing facilities.
Within the 7(a) loan framework there are multiple categories of loans designed for
specific functions. CAPLines provide short-term and cyclical working capital needs,
construction, operating capital, and consolidate short-term debt. The Employee
Trusts Program provides financial assistance to Employee Stock Ownership Plans.
Export Loans aim to help small businesses take advantage of the world market, and
can include 90% guarantees and financing up to $5 million.

Business Financing
Express and Pilot Programs streamline and expedite the loan process for certain com-
munity members, by providing rapid responses (within 36 hours of submitting applications)
and lowered interest rates (often from 2.25% – 4.75%).
Eligible candidates include:
• Veterans
• Service disabled veterans
• Eligible active duty service members
• Reservists and National Guard members
• Current spouse of any of the above
• Widowed spouse of a service member/veteran who died during service or of a
service-connected disability
The Small Loan Advantage (SLA) Program is designed to encourage larger, existing SBA
lenders to make lower-dollar loans, with a maximum value of up to $250,000, which
benefit businesses in underserved markets. These loans offer a streamlined application
process to the 7(a) loans, with minimal paperwork and a two-page application. Most
loans will be approved in a matter of minutes through electronic submissions; non-
delegated loans will take five to ten days. All lenders that are currently part of the SBA’s
Preferred Lenders Program (PLP) are eligible to participate.
The application procedure for a SBA loan varies. Specifics depend on the type
of loan, as well as the lender, so it’s important to ask the local lender which format
they require. The SBA website (www.sba.gov) has a thorough checklist of documents
needed to apply for one of their loan programs, as well as advice on how to put
together and present your application.
Applications should be made to local intermediaries, as all credit decisions are made
at a local level.
DC participating intermediaries include:

Enterprise Development Group
703.685.0510 | www.entdevgroup.org
H Street Community Development Corporation

202.544.8353 | www.hstreetcdc.org
Latino Economic Development Corporation

202.588.5102 | www.ledcdc.org

202.529.5505 ext. 19 | www.wacif.org
Wheeler Creek Development Corporation

202.574.1508 | www.wheelerce.org
CDC/504 Loan Program

This program provides long-term, fixed-rate financing aimed at encouraging econom-
ic development within a community by investing in expansion and modernization.
The loan can be used for most project costs. The goal is to provide both immediate

and long-term benefits, so that businesses can focus on growth. There is no specific
maximum project size, but the SBA portion of the loan cannot exceed $5 million.
The SBA partners with certified Community Development Companies (CDCs), and
funds are made available through them. The cost is covered in three parts: a private
sector loan covering 50% of the project costs, a SBA loan covering 40% of the project
cost, and a 10% equity contribution from the borrower. Eligibility is determined by
type of company and the size and income standards of the SBA:
• Companies must be for-profit (no nonprofit, passive, or speculative activities)

• Tangible net worth must not exceed $15 million after federal income taxes
• Average net income must not exceed $5 million after federal income taxes, for
the two years prior to application
The program now includes the Temporary 504 Loan Refinancing Program, which allows
small business owners to refinance up to 90% of the appraised value of available collat-
eral. At the time of publication $7.5 billion was available in financing until September 27,
2012. The program contains many money-saving benefits, including:
• Consolidated existing debt (balloon and/or high interest rate loans)

• Locked in long-term, stable financing, reducing fluctuating expenses
• Finance eligible business expenses, saving needed cash-flow
• Protected jobs and ability to hire additional staff, which supports the local community
• Closing costs accounted for in the transaction, eliminating cash-flow drain
Three DC area 504 lenders:

Business Finance Group Inc.
703.352.0504 | www.businessfinancegroup.org
Chesapeake Business Finance Corporation

202.625.4373 | www.chesapeake504.com
Mid-Atlantic Business Finance Company

800.730.0017 | www.mabfc.com
Choosing the Right Loan

While there are only two types of loans, short-term and long-term, there are dozens of WDCEP TIP
loan combinations. By understanding the different types of loans on the market, and For a complete list of SBA certified
what each is designed to do, you can select the one best suited for your specific credit and preferred lenders in the DC area
visit www.sba.gov/dc and click on
needs and circumstances. Make sure that you feel comfortable with your banker, the
“Financing”.
bank loan terms, your interest rates, and your ability to repay any loans before you com-
mit yourself. Do your research, as it is often advisable to compare loan packages from
more than one lender before making a decision. The SBA offers a wealth of information
to businesses, including financing options. For more information, visit www.sba.gov/dc.
If you have difficulty obtaining a loan, or your bank advises you to do so, you may
want to secure a loan guaranty from the SBA. Though the SBA does not loan directly
to small businesses, it does operate a number of programs that can give your pro-
spective lender additional security when financing your business.

Business Financing
Small Business Lenders

When choosing a lender, it is important that you feel comfortable with both the loan of-
ficer and the bank itself. Many banks specialize in particular types of business financing.
Others have restrictions on the types of businesses that they will loan to. Don’t be reluc-
tant to ask questions or submit your loan application to different banks at the same time.
Equity Financing and Other Source of Funding

Other financing options include venture capital firms, angel investors and small busi-
ness investment companies. In recent years, DC has added a number of new pro-
grams to help businesses open and expand.
Certified Capital Company (CAPCO) Investment Program

The DC Department of Insurance, Securities and Banking (DISB) administers a CAPCO
Investment Program for small and start-up businesses in the District of Columbia. The
Certified Capital Companies Act of 2003 (effective March 10, 2004) authorizes the
CAPCO Investment Program to provide up to $50 million in tax credits to insurance
companies that make money available to certified capital companies, investment firms
that specialize in high risk, or small and start-up ventures based in the District of
Columbia. The CAPCO legislation requires the ventures to be based in the District of
Columbia, have 75% District residency of their staff, and employ at least 25% District of
Columbia residents. A business applying for CAPCO funds must be a small business as
defined by the U.S. Small Business Administration, and the business must be unable to
obtain conventional financing from a commercial lender.
202.727.8000 | www.disb.dc.gov
Cámara de Comercio Hispana

del Área Metropolitana de Washington
DELTA ASSOCIATES
Leading information provider to the
Who are we? Washington-area commercial real estate industry
The Greater Washington
Hispanic Chamber of
Commerce (GWHCC) has been
promoting the growth of the
Hispanic business community
in the DC metropolitan region
for 35 years.
What do we do?
The mission of GWHCC is to
promote the success of
Hispanic and minority-owned
companies. We accomplish our
mission through the following APARTMENTS | CONDOMINIUMS | OFFICE
initiatives: RETAIL | MIXED-USE
Services Include:
• Technical Assistance Program
Market Studies | Repositioning Analyses | Asset Valuations
for Small Businesses
Feasibility Studies | Litigation Support | Market Data
and Start ups
• Monthly Networking Events
CONSULTING AND ADVISORY SERVICES
• Monthly Bilingual
Angela Franco, President of GWHCC Gregory H. Leisch, CRE, Chief Executive
Educational Seminars
• Annual Gala – June 1, 2012 Greg.Leisch@DeltaAssociates.com
Greater Washington Hispanic • Annual Business MARKET PUBLICATIONS GROUP
Chamber of Commerce Expo – April 2, 2013 Alexander (Sandy) Paul, National Research Director
910 17th St. NW, Suite 1150, Alexander.Paul@DeltaAssociates.com
www.DeltaAssociates.com | 703.836.5700
www.gwhcc.org / info@gwhcc.org / (202) 728-0352
Venture Capital and Private Equity investment

Venture Capital firms and private equity investment firms generally require some man-
agement control (in addition to repayment) in exchange for their financial investment.
An advantage to using private investors is that they bring experience and their networks
of contacts to your business. To obtain a listing of area venture capital firms or other
private equity investors, visit the Mid-Atlantic Venture Association (MAVA) online. MAVA
is a membership organization of investors, entrepreneurs, advisors, and other company-
builders. For more information, see Chapter 12: Technology Company Resource Guide.
Mid-Atlantic Venture Association | 703.506.9300 | www.mava.org
Venturehouse Group
Venturehouse Group is a venture capital firm that assists in building entrepreneurial
businesses. They offer private equity financing for new businesses. In addition to
providing young private companies with investment capital, Venturehouse Group
also serves as a strategic partner, providing businesses with the expertise, support,
infrastructure, and the network of services they need.
202.654.7000 | www.venturehousegroup.com
Small Business Investment Companies (SBIC’s)

SBICs are licensed and regulated by the SBA and are investment firms that make
capital available to small businesses through investments or loans. They also provide
management assistance and expect a share of the profits from your business.
Tax-Exempt Bond
Revenue Bond financing is an attractive source of funding for businesses and non-
profit organizations that locate or operate within the federally designated Enterprise
Zones (see page 39 for more information on Enterprise Zones). A qualified private
business can borrow up to $15 million of tax-exempt bonds to invest in buildings,
equipment, and furnishings used for the qualified business. Besides being tax
exempt, the bond financing is usually at least two percentage points below market
interest rates. A nonprofit organization is not bound by its location as long as it is
within the District of Columbia and may borrow as much as it needs (see Chapter 5:
Financial Incentives for eligibility requirements).

Business Taxes
4
General Business Tax Requirements, Employer Tax Requirements, Other Types
Contributors: The DC Office of Tax and Revenue
There are two different classes of business taxes in the

District; general business taxes and employer taxes. The
general business taxes include corporate franchise tax,
unincorporated business franchise tax, sales tax and use
tax, personal property tax, gross receipts tax and taxes on
special events. The employer taxes affect organizations
according to their ownership structure. In this chapter we
will cover both classes of business taxes. However, while
reviewing this chapter it is important to bear in mind that WDCEP on YouTube
Search Business Taxes at
there are a variety of tax abatement programs for District www.youtube.com/wdcep1495
businesses (see Chapter 5: Financial Incentives).
general business taxes

Corporate Franchise Tax
If you engage in or carry on a trade or business in the District, and/or receive income
from sources within the District as a corporation, you are required to file Form D-20,
Corporate Franchise Tax return with the DC Office of Tax and Revenue. You must file
the form by the 15th day of the third month following the close of the corporation’s
Business Taxes
Tax payer service center taxable year. The minimum tax payable under the District corporate franchise tax is
To find out where to file forms, please go $250 if the District gross receipts are $1 million or less and the minimum tax payable is
to OTR’s taxpayer service center website: $1,000 if the District gross receipts are greater than $1 million.
www.taxpayerservicecenter.com. You
will also be able to file some forms
Unincorporated Business Franchise Tax
online.
You will need to file Form D-30, the Unincorporated Business Franchise Tax, if your
DC OTR business is unincorporated (sole proprietorship, partnership, joint venture, etc.),
202.727.4TAX (4829) | @DC_OTR engaging in or carrying on any trade or business in the District of Columbia, deriving
rental income and/or receiving other income from sources within the District, whose
gross receipts exceed $12,000 a year. The minimum tax payable under the District
unincorporated business franchise tax is $250 if the District gross receipts are more
than $12,000 but not more than $1 million and minimum tax payable is $1,000 if the
District gross receipts are more than $1 million.
Sales Tax and Use Tax

If you engage in business activities in the District of Columbia, you must collect sales
and use tax from the purchaser on the sale of:
• Tangible personal property delivered to a customer in DC

• Certain foods and drinks sold at retail
• Certain services including but not limited to security, data processing, informa-
tion and real property and maintenance services
• Rental of rooms to transients
• Admissions to certain public events that take place in DC
• The service of parking, storing, or keeping motor vehicles and trailers in DC
In addition, you must file a Sales and Use Tax Return (Form FR-800M) monthly by the
20th day of the month following the reporting period, the FR-800Q (quarterly sales tax
return) by 20th day of the month following the reporting quarter and the FR-800A (annual
sales tax return) on 20th of October. The annual sales tax year covers the period from
October 1st of the year through September 30th of the following year.
Personal Property Tax

For any tangible personal property (e.g. furniture, computers, fixtures, books), which is
used or available for business purposes, you are required to file Form FP-31 and pay
personal property tax on or before July 31st for each year. This includes property kept
in storage or held for rent, which is leased to third parties including governmental
agencies, under a “lease-purchase agreement.” The Form FP-31 must be based upon
the current value of all tangible personal property owned as of July 1st. The statute
allows filers to exclude $225,000 of personal property value.
Gross Receipts Tax

If your business falls under one of the following categories, you are subject to the
gross receipts tax:
• Utilities and telecommunications companies providing long distance service,

cable television, satellite relay or distribution of video or radio transmission to
subscribers and paying customers

• Heating oil delivery companies

• Commercial mobile service providers and non-public utility sellers of natural or
artificial gas
Ballpark Fee
The Ballpark Fee was introduced with baseball’s return to DC. The Office of Tax and Ballpark Fee
Revenue (OTR) requires that all businesses file and pay a Ballpark Fee Return elec- Schedule
Revenues Fee
tronically. In order to file and pay electronically, a fee payer must:
$5–8M $5,500
$8–12M $10,800
• Have a valid Federal Tax Identification Number (EIN)
$12–16M $14,000
• Have filed a completely executed FR-500 (Combined Business Tax Registration
$16M+ $16,500
Form)
Please refer to the Ballpark Fee Schedule to see which bracket your business fits into.
Taxes on Special Events

Special events are taxable activities, which occur inside the District of Columbia at
intervals or only once. Special events include auctions, shows, celebrations, circuses,
expositions, entertainment, exhibits, fairs, festivals, fundraisers, historical re-enactments,
movies, pageants, parades, and sporting events. Vendors participating in special events
are liable for sales tax on items sold during the event.
Promoter Obligations
The promoter must submit an FR-500B registration form. The form details the infor-
mation required about the promoter, the type of event, and the listing of vendors
scheduled to be at the event.
The promoter must submit to the mayor a list of vendors and exhibitors, including their
names, addresses, representatives and telephone numbers, 30 days before the event
and resubmit a final list ten days after the event.
Promoters are also responsible for informing vendors of the District sales tax ob-
ligations and filing deadlines. Other obligations for vendors are supplied after the
preliminary list is submitted. Vendors, however, are still responsible for filing sales tax
returns with the District.
The promoter must provide access to the Office of Tax and Revenue to the special
event premises and activities to monitor vendor and exhibitor sales as well.
A promoter who fails to submit the preliminary vendor and exhibitor list shall pay a
penalty in the amount of $1,000, plus $50 for each day the list is late, with a maximum
penalty of $2,500. A promoter who fails to submit the final vendor and exhibitor list
shall pay a penalty in the amount of $1,000 plus $50 for each day the list is late, with a
maximum penalty of $10,000.
For further questions regarding special events, contact DCRA at 202.442.6805 (@DCRA).
employer taxes
Organizations will be taxed based on ownership structure type. (Please see the figure
on the following page for tax requirements.)

Business Taxes
Unemployment Taxes
If you are an employer in the District of Columbia with at least one full-time or part-time
employee, you are required to register Part VI of the Combined Business Tax Registra-
tion Form for unemployment taxes. Each employer that is determined liable for taxes is
Office of Tax & Revenue assigned an account number. This number identifies the employer’s individual account,
Office of the Chief Financial Officer which is a record of taxes paid by the employer and charges made against the employ-
1101 4th Street, SW, Suite W270 er by former employees.
Liable employers must file quarterly tax and wage reports with the Department of
202.727.4849 | @DC_OTR
Employment Services (DOES) Tax Division on or before the last day of April, July,
www.taxpayerservicecenter.com
October, and January of each year. Reporting forms imprinted with your information
will be mailed to you roughly five weeks before each due date. Employers who
employ only household employees may elect to file tax and wage reports annually
rather than quarterly.
The amount of tax due is based on a specified tax rate of taxable wages for the quarter.
As the employer you are solely responsible for the taxes—no part of the tax should
be deducted from the employee’s wages. Taxes are based on gross wages before any
amount is withheld for any purpose. Gross wages include salaries, commissions, bonus-
es and the cash value of any remuneration payable to the employee in a medium
other than cash (e.g., lodging, meals). Taxes are payable for the first $9,000 paid
to each employee during a calendar year. A newly liable employer pays taxes at
the rate of 2.7% or an average rate paid by all employers during the preceding year,
whichever is higher. Nonprofit organizations covered under the UC (Unemployment
Compensation) law may elect to reimburse DOES for benefits paid to their former
employees, rather than paying quarterly contributions at a predetermined rate.
Business Tax Requirements

based on ownership structure
General Partnership Nonprofit

• Profits are personally taxed to partners based on percent- • May seek to be exempt from taxation, which requires the
age of ownership; approval of the IRS under specific guidelines
• Can claim on personal taxes
Limited Liability Corporation
• Corporation is taxed on earnings, owners only taxed on
Limited Partnership
income taken out of business;
• Profits are personally taxed to partners based on percent-
age of ownership; • Additional tax benefits
• Can claim on personal taxes
Sole Proprietorship
• Profits are personally taxed to owner;
Limited Liability Partnership
• Special Tax Consequences • Offers few tax benefits
S Corporation
• Corporate earnings are subject to “double taxation”
when corporations are taxed and shareholders receive
dividends
For more information on the District’s compensation law pertaining to taxes, contact
the Office of Unemployment Compensation Tax Division at 202.698.7550.
For Nonprofit Organizations

If you are exempt from federal unemployment taxes, you have two options to finance
unemployment insurance coverage:
Payment of contributions at the rate assigned by the DC Department of

Employment Services.The rate is applied to the taxable wages earned by each em-
ployee during a calendar year. Contributions are paid on a quarterly calendar basis.
or
Reimbursement of the trust fund.At the end of each calendar quarter, the employer
is billed for unemployment benefits paid to its former employees during the quarter.
Employer Withholding Forms

All employers with businesses located in DC are required to deduct and withhold
District income tax from employees’ wages and pay the District the exact amount of
withholding as shown in the withholding tables.
Delinquent on Taxes
As a new business owner, it is critically important that you understand and comply
with all of the tax requirements based on your business type and operations. The
DC Office of Tax and Revenue (OTR) encourages businesses and individuals that are
not in compliance with District tax laws to voluntarily come forward to bring their
accounts into compliance through the Voluntary Disclosure Program. Participation in
the Voluntary Disclosure Program can be anonymous or under the taxpayer’s identity.
OTR will waive civil penalties if the tax and interest is paid in full.

Arena Stage used the DC Revenue Bond Program to help fund the $125 million expansion of their theater complex.
Financial Incentives
5
Summary of Financial Incentive Programs,
DC Enterprise Zone Program, DC Technology Incentives
Contributors: The Office of the Deputy Mayor for Planning and Economic Development |
The Department of Insurance, Securities and Banking
The Government of the District of Columbia offers a

variety of incentives for entrepreneurs who are looking
to locate or expand their business in DC. This section
of the DC Doing Business Guide gives you an array
of programs set up to help businesses succeed in DC
such as the Enterprise Zone program and the DC Tech
Incentive program.
The DC Enterprise Zone Program1 WDCEP on YouTube

The District of Columbia’s Enterprise Zone (EZ) Program was established in 1997 by the Search Financial Incentives at
federal government to stimulate economic growth and job development in the nation’s www.youtube.com/wdcep1495
capital. Businesses who qualify for the EZ incentives are eligible up to $1.2 billion of
federal tax credits, deductions, exemptions and exclusions.
Primary Enterprise Zones are defined as a geographical area with 20% or higher
poverty rates based on 1990 Census tract data and are eligible for all EZ incentives.
1 At the time of publication, the Enterprise Zone Credit expired and had not yet been renewed; please
consult your accountant for its current status.
WDCEP Tip Secondary Enterprise Zones are defined as a specific geographical area with
DC Enterprise Zones are divided into between 10–20% poverty based on 1990 Census tract data. Secondary EZs are only
primary and secondary zones. Locate eligible for federal capital gains tax exemption and personal property tax exemption.
your business in a primary zone for
maximum benefits.
Eligibility for EZ Incentives
To determine if your business is located within an Enterprise Zone, visit the Office
of the Deputy Mayor for Planning and Economic Development (DMPED) online at
www.dcbiz.dc.gov and click on “DC Business Incentives Map.” You may also visit
the Department of Housing and Urban Development’s Address Locator online at
www.hud.gov. If you have questions about a specific address, please contact the DC
Revenue Bond-Enterprise Zone Program Office at the DMPED at 202.727.6365.
To be a qualified Enterprise Zone business, your business will need to meet the fol-
lowing criteria:
WDCEP Tip • It must operate as a corporation, nonprofit, partnership, LLC or sole proprietorship
The DMPED’s online DC Business • It must be a business that does not primarily develop or hold intangibles for sale
Incentives Map can determine if your or license. The only trade or business is the active conduct of a “qualified busi-
business is located in an Enterprise
ness” as defined by the IRS (IRS Publication 954).
Zone, Hub Zone, High Technology
Development Zone, Supermarket Tax • At least 50% of the business income is from the active conduct of a trade or busi-
Credit Zone and other incentive areas. ness within the EZ
• A substantial portion of the tangible property and non-tangible property is used
in the active conduct of a qualified business
• A substantial portion of the services performed for the business by its employees
is performed in the EZ

Summary of Financial Incentive Programs, DC Enterprise Zone Program, DC Technology Incentives
Incentives Available to EZ Businesses Please Note

A Qualified Enterprise Zone Business (QEZB) may take advantage of the following At the time of publication, the EZ Pro-
gram had expired and had not yet been
incentives:
renewed, therefore Revenue Bonds are
Tax-Exempt Bond Financing (EZ Bonds) eligible in all areas of the city until fur-
ther notice. Check with your accountant
The DC Revenue Bond program provides below market interest rate loans (as much
for the current status of the EZ Program.
as 200 basis points below the market rate) to qualified private businesses that are
located in the EZ, as well as nonprofit and manufacturing organizations citywide. Each
QEZB is eligible for up to $15 million of tax-exempt “EZ bonds” (no limit for nonprofit
organizations) to finance depreciable tangible property, including buildings, equipment,
and furnishings used in the business. Tax-exempt bond financing means that the
holder of the debt does not have to pay federal income tax on the interest earned
from the investment, thereby allowing you to lend money at lower rates than typical
“taxable” securities.
You can issue bonds to assist in financing a broad variety of capital projects and eli-
gible EZ bond projects including:
• Construction and renovation of a building

• Equipment acquisition
• Land and building acquisition
• Tenant improvements
Program funds are generated through the issuance and sale of tax-exempt and tax-
able municipal revenue bonds, notes, or other obligations. Proceeds from the sale
of these securities are loaned to borrowers and may be used to finance, refinance
and reimburse costs of acquiring, constructing, restoring, rehabilitating, expanding,
improving, equipping and furnishing real property and related and subordinate facili-
ties. Because of related costs, revenue bond financing may not be cost effective for
businesses seeking less than $2 million in financing.
Exclusion of Capital Gains from DC Zone Assets

If your business derives at least 80% (a requirement for this provision only) of its total
gross income from business conducted within the EZ, then you are eligible for exclu-
sion of federal capital gains taxes on qualified sale of stock, partnership interests, or
property. The investment must be held for a minimum of five years.
DC Employee Tax Credits

Each QEZB may claim a tax credit of up to $3,000 annually for each DC resident employ-
ee at the EZ facility. Businesses may claim a maximum of $3,000 or 20% of the first $15,000
in qualified wages for each qualified employee during each of the five tax years. The tax
credit is applicable to both existing and new employees, as well as full-time and part-
time employees. Credits are leveraged against federal corporate tax liability. To obtain
employee tax credits, complete IRS Form 8844 and submit with your federal tax return.
Work Opportunity Credits

A QEZB may claim up to $2,400 for each employee from targeted demographic
groups.

Welfare to Work Credits

A QEZB can claim up to $3,500 and $5,000 for the first and second years of employ-
ment, respectively, for workers receiving long-term family assistance.
Work Opportunity Tax Credits (WOTC)

WDCEP Tip DC-based businesses are eligible for up to $9,000 in WOTC tax credits over two years
Insert the WOTC pre-screening form for each employee who was previously a “long-term family assistance recipient.” A
into your on-boarding documents to separate $2,400 tax credit is available for qualified employees, including youth living
ensure that you capture credits from within the Enterprise Zones, veterans, ex-felons, residents of impoverished communi-
eligible new hires.
ties, and recipients of supplemental social security benefits in the first year of employ-
ment. These are nationwide tax credits and generally have no employee residency
requirements.
To receive certification that a new employee qualifies the employer for this tax credit,
the employer must:
1. Complete page one of the IRS Form 8850 by the day the job offer is made
2. Complete page two of IRS form 8850 after the individual is hired
3. Complete either the one page ETA Form 9061 or Form 9062 as appropriate
For example:
• If the new employee has already been conditionally certified as belonging to a
WOTC target group by a state workforce agency (SWA) or participating agency,
complete the bottom part of ETA Form 9062, sign and date it, or
• If the new employee has not been conditionally certified, the employer and the
new employee must complete, sign and date ETA Form 9061
Mail the completed and signed IRS and ETA forms to the employer’s state workforce
agency within 28 days after the employee’s employment start date. You can find
these forms online at www.irs.gov or request to receive the forms by mail by calling
1.800.829.3676.
DC Tech Incentives (formerly NET 2000)

High Technology The District offers one of the most attractive incentive packages for high-tech busi-
Development Zones nesses in the country. The DC Tech Incentives provide certain credits, exemptions,
To determine whether a business is and other benefits for a Qualified High Technology Company (QHTC). A QHTC can
located in a high tech zone, go to leverage the program to develop their workforce, secure affordable facilities for
www.dcbiz.dc.gov, click on “DC Busi-
their business and benefit from reduced real estate, personal property, sales, and
ness Incentives Map” and then click
on high tech development zones or income taxes.
call the Office of Tax and Revenue at
202.442.6500. Claiming DC Tech Incentives
To qualify as a QHTC, a business will need to attach the forms listed below to any tax
return claiming the benefits of the DC Tech Incentives. You may obtain these forms
online at www.dcbiz.dc.gov or www.otr.cfo.dc.gov, or you may contact the District’s
Office of Tax and Revenue, Tax Form Center at 202.442.4829.

Required Forms for DC Tech Incentives Application Net 2000 Act

If you have questions about the NET
• Publication 399: Qualified High Technology Companies (description of and 2000 Act, please contact the DC Of-
forms for claiming tax benefits) fice of Tax and Revenue’s Office of
the General Counsel at 202.442.6500,
• QHTC-CERT 2001: Certification for Qualified High Technology Company Form
the Office of the Deputy Mayor for
• D-20CR: Business Tax Credits Form (file with form D-20) Planning and Economic Development
• D-30CR: Business Tax Credits Return Form (file with form FP-332) at 202.727.6365, or refer to DC Law
13-256 and related regulations to de-
• FP-332: Claim for Refund of Retaining Costs Form
termine eligibility.
• FP-331/337: Claim for Refund of Sales & Use Tax
• Exempt Purchase Certificate Forms
• NET 2000 Financial Incentives
DC Tech Incentives Financial Benefits

A QHTC can expect a significant tax break with the following abatements from DC
taxes:
Franchise Tax Reduction or Exemption

• Zero franchise tax on unincorporated technology business
• Five-year elimination of franchise tax on incorporated technology companies
located within the High Technology Development Zone. Companies enjoy a
reduced franchise tax rate of 6% from the sixth year forward.
• Reduced franchise tax of 6% for incorporated tech companies located outside of
the tech zones but within the District of Columbia
Real Property Tax Abatement

• A five-year abatement of increases on property tax rates attributable to renova-
tions to accommodate technology companies and for certain newly constructed
buildings
Personal Property Tax Abatement

• A ten year exemption of personal property taxes on certain purchases made after
December 31, 2000
• An allowance of up to $40,000 in personal property expense deductions
Sales and Use Tax Exemption

• Elimination of DC sales tax on certain sales to eligible companies
• Sales by eligible companies of certain intangible property or services are not
taxable
Capital Gains Tax Exemption

• An exemption from District taxation of certain capital gains from the sale, ex-
change or rollover of stock, partnership interests and other assets of qualified
high tech companies held for a minimum of five years
Workforce Development Credits

• DC Tech Incentives provides credits to the franchise tax for wages paid and cer-
tain expenditures made on behalf of employees

Summary of Financial Incentive Programs

Revenue Bond Program DC CAPCO
Provides issuance and sale of tax-exempt bonds to finance, $50 million as capital to support small and start-up businesses
refinance, and reimburses costs of capital projects — including Eligibility
property acquisitions, renovations, construction and purchase • Capital needs of $100,000 or more
of machinery and equipment • Must be headquartered in DC and at least 75% of your
Eligibility employees must work in DC and 25% must live in DC
Borrower must be a qualified 501(c)(3) nonprofit or manufac-
Department of Insurance, Securities and Banking
turer located in DC; for-profit company must be located in a
202.727.8000 | @DCDISB | www.disb.dc.gov
Primary EZ
DMPED | 202.727.6365 | www.dcbiz.dc.gov
Tax Increment Financing (TIF)
Provides issuance and sale of tax-exempt governmental
Enterprise Zone Program (EZ) revenue bonds to finance public infrastructure redevelopment
Businesses can borrow up to $15 million of federal tax exempt
within predetermined geographic areas
bonds to finance capital projects; annual federal employment
Eligibility
tax credit of up to $3,000 for each DC resident employee;
Eligible projects must be consistent with statutory criteria (a rede-
increased federal expensing allowance
velopment plan) and typically are supported by project feasibility
Eligibility
studies, cost/benefit analysis and development agreements
• Business primary location is within a federally designated EZ
DMPED | 202.727.6365 | www.dcbiz.dc.gov
• 50% of business income earned in an EZ
• Substantial portion of business property, services and workers Supermarket Tax Exemption
are within an EZ Revenue Bond & Enterprise Zone Program Ten-year exemption of real estate and personal property taxes
DMPED | 202.727.6365 | www.dcbiz.dc.gov and license fees; exemptions of sales and use taxes on building
materials for construction or rehabilitation
Work Opportunity Tax Credit Eligibility
Businesses can receive $2,400 for each new adult hire; $1,200 for Must be a qualified supermarket in a priority development area
each new summer youth hire; and $9,000 for each new long- DMPED | 202.727.6365 | www.dcbiz.dc.gov
term family assistance recipient hired over a two-year period
Eligibility DC Tech Incentives (Formerly NET 2000)
New employees that belong to one of the eleven target Variety of incentives for technology companies
groups, including: qualified TANF recipients; qualified ex-fel- Eligibility
ons; qualified veterans; qualified food stamp recipients; quali- Must be certified as Qualified High Technology Company
fied SSI recipients; long-term family assistance recipients (QHTC), meeting the following criteria:
• Individual or for-profit with two or more employees
For a complete list and more detailed information please visit
• Maintain an office, headquarters or base of operations in DC
www.doleta.gov and search for “WOTC”
• Derives 51% or more of gross revenues from a high tech
DOES | 202.724.7000 | www.does.dc.gov
business as defined by law
Customized Training Program To determine eligibility:

Employers are reimbursed for funds spent to train District resi- Office of Tax & Revenue’s Office of the General Counsel
dents as skilled employees; maximum $500,000 per contract 202.442.6509 | @DC_OTR | www.otr.cfo.dc.gov
Eligibility
For forms:
Must submit funding request to Department of Employment
Office of Tax & Revenue’s Tax Forms Office
Services and negotiate single source contract
202.727.4TAX | @DC_OTR | www.otr.cfo.dc.gov
Office of the Deputy Director | DOES
202.658.5810 | @ONEDOES_ONECITY | www.does.dc.gov

Relocation Expense Reimbursement

Companies that move at least two fulltime jobs to DC are eligible for:
• A credit of $5,000 per employee for reimbursement of employee moving expens-

es and payments for the employee’s lease or purchase of a primary residence
capped at $250,000 per company per year
• A credit of $7,500 per employee for reimbursement of employee moving expenses
and payments for the employee’s lease or purchase of a primary residence if the
employee relocates to DC from outside DC, capped at $1,000,000 per company
per year
Wage Credit
• You may claim a credit of 10% of wages paid for the first 24 months of employ-
ment, up to $5,000 per employee per year
Training and Wage Credits

• Companies that hire the following types of employees are eligible for these cred-
its: employees that are recipients of Temporary Aid for Needy Families (TANF),
ex-offenders, or employees for whom the company may claim the Work Oppor-
tunity Tax Credit (see explanations for those in “Federal Tax Incentives”)
• A credit for each employee of up to $20,000 for costs of approved training during
the first 18 months of employment
• A credit of 50% of wages paid for the first 24 months of employment, up to
$15,000 per employee per year
• Wage and relocation credits can be carried forward ten years if a company does
not have District tax liability
Locate Your business in an

incentive Zone
Use WDCep’s Retail site seaRCh
Find storefronts in
high technology Development,
hUB, enterprise and
supermarket tax Credit Zones

DOES is located on Minnesota Avenue & Benning Road. Their services such as the One City One Hire Initiative
or On the Job Training program can streamline your hiring process.
Finding Talent
6
and Labor Laws
Resources for Finding Talent, Local and Federal Labor Laws,
Employment Regulation
Contributors: The DC Department of Employment Services
In order to hire a qualified employee, companies must

consider a wide variety of traits, such as skill level, job
flexibility, and experience. However, finding talent is only
the first step in the recruitment process; companies
must also understand the relevant labor laws concerning
the governance of employees.
Finding Talent
Locating the right person to hire can be a major challenge, but bear in mind that
WDCEP on YouTube
DC has an extensive job market. In 2011, the unemployment rate in the District of Search Finding Talent & Labor
Columbia averaged 10.2%1. Laws at www.youtube.com/
wdcep1495
Look broadly at ways to fill your employment needs
• Be flexible. Can your needs be fulfilled by part-time employees, as opposed to

full-time employees? Can student interns or recent graduates be of assistance?
• Consider hiring independent contractors for assignments. Contractors’ hourly
rates may be higher than the respective wages of full-time employees, but
1 DC Department of Employment Services

Finding Talent and Labor Laws
contractors are hired for a pre-defined and limited amount of time. Additionally,
contractors do not receive benefits.
• Develop an attractive package. Most small businesses cannot afford a pension
or profit-sharing plan, but can offer perks like flexible scheduling, telecommuting,
additional vacation leave or free transportation.
Suggestions for finding talent in DC
• Attend professional and networking events

• Contact and/or join industry specific professional associations
• Post advertisements in newspapers, publications, journals and online
• Hire an executive recruitment firm for professional staffing needs
WDCEP Tip The Department of Employment Services

For more information about the as- (DOES) Assistance Programs
sistance programs for DC-based small The District government is an asset you can use to assist you with your employee re-
businesses that the Department of cruitment efforts. The Department of Employment Services (DOES) has implemented
Employment Services has implemented a number of assistance programs to small businesses that can help attract qualified
go to www.does.dc.gov. talent, including:
One Stop
Area employers can use the online One Stop to place job orders and search for ap-
plicants by skill set or position. The system also accommodates the employer looking
for specific industrial and economic data.
www.dcnetworks.org | 202.724.7000
Job Order Processing

Individual employer job specifications and necessary worker qualifications are
recorded and made available to qualified applicants both locally and on America’s
Job Bank via the internet. The staff meets employer job needs consistent with Equal
Employment Opportunity (EEO) principles through the selection and timely referral of
qualified permanent full-time, temporary, and part-time workers.
The DOES’ special initiatives include efforts to:
• Assist with the coordination of the Washington Region Access to Jobs Program
• Administer the Work Opportunity and Welfare-To-Work Tax Credit
• Assist public/private organizations with special recruitments
First Source Agreement

The First Source Agreement program grants DC residents priority for new jobs cre-
ated by municipal financing — either in-part or in-full — and development programs.
All beneficiaries of contractual agreements totaling $100,000 or more are required to
enter into a First Source Agreement with DOES and to utilize DOES as a first source
for recruitment, referral, and placement of employees.

Resources for Finding Talent, Local and Federal Labor Laws, Employment Regulation
One City One Hire Initiative Additional Job

One City One Hire is an employer-driven hiring initiative with the goal of putting Development Inititatives
In addition to First Source Agreement,
District residents back to work. As part of DC’s economic development strategy
Job Order Processing and the online
many programs are featured in the One City One Hire Initiative. We can distinguish
One Stop, the DOES also supports job
the One the Job Training program, the Work Opportunity Tax Credit (WOTC), the development efforts associated with:
Apprenticeship Program, the Project Empowerment (PE) and the Veterans’ Employ-
ment Program. • Mayor’s Retail Summit
• Citywide Job Fair
One City One Hire is a Value Added Investment for Employers
• Business Resource Center
The expense to businesses to hire new employees can be a costly investment in both
• Focused Improvement Area
time and money. The DOES can help employers defray some of these costs by facili-
Initiative
tating training, recruitment, and screening processes for potential hires to prepare
• Minority Business Development
and identify qualified candidates. The DOES is also partnering with local corporations
Center
to offer job coaching and mentoring services at no charge to hiring employers. By
taking advantage of these programs, services, and incentives, employers can reap the
rewards of an adequately trained workforce that meets their needs.
A new strategy for improved customer service delivery in preparing job seekers and
assisting employers with their employment needs is underway city-wide at every DC
Works Career Center.
Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federally funded program that reduces
the federal tax liability of private-for-profit employers hiring new employees from
selected target groups who have consistently had difficulty obtaining or maintaining
employment. Tax credit amounts vary and are based on a percentage of wages paid
to, and hours worked by, properly certified employees.
Target Groups
• TANF Recipient
• Veteran
• Ex-felon
• Designated Community Residents
• Vocational Rehabilitation Referral
• Qualified Summer Youth
• Food Stamp Recipient
• SSI Recipient
• Long-term Family Assistance Recipient
• Unemployed Veteran
• Disconnected Youth
Employer Benefits
• $2,400 generally for each new adult hire
• $1,200 for each summer youth hire
• $4,800 for each new disabled veteran hire
• $9,000 for each new long-term TANF recipient hired over a two-year period

Apprenticeship Program
The Apprenticeship Program offers on-the-job training opportunities, combined
with classroom instruction, to teach workers the practical and theoretical aspects of
highly skilled occupations, including construction, electrician, plumbing/HVAC, and
carpentry trades. Applicants must meet the sponsor’s eligibility requirements and
demonstrate that they have the ability, aptitude, and education to master the basics
of the occupation.
Participant Eligibility Criteria

Apprenticeship sponsors must be approved by a state or federal apprenticeship reg-
istration agency for certification. The general qualifications for apprenticeships vary
by craft, but general qualifications for apprenticeship selections are typically:
• 18 years or older
• Drug-free
• Physically able to do the work of the specified trade/occupation
• A high-school diploma or General Education Diploma (GED)
• Access to reliable transportation, particularly for construction trades
• A high school transcript, may be required
Your Choices, Your Trade

There are more than 800 apprenticeship trades recognized nationally. For more infor-
mation contact the Office of Apprenticeship Information and Training at 202.698.5099
or www.does.dc.gov.
Project Empowerment (PE)

Project Empowerment (PE) provides supportive services, adult basic education, job
coaching, employability, life skills and limited vocational training, and job search assis-
tance to hard-to-serve District of Columbia residents with multiple barriers to employ-
ment, living in areas with high unemployment and/or poverty levels.
Employer Benefits
• Protected through the Federal Bonding program. A bond can be issued to the em-
ployer as soon as the applicant has a job offer with a date scheduled to start work.
• No federal regulations covering bonds issued
• Receive the Work Opportunity Tax Credit
Job Retention and Case Management

The job retention staff works with new employees for approximately six months to
ensure that they have the necessary support to succeed on the job.
Target Audience
The District of Columbia residents who benefit from these services must be 22-54
years old; currently unemployed and lack a secondary school educational credential
(high school diploma or its recognized equivalent, e.g., GED).
Veterans’ Employment Program

The Department of Employment Services (DOES) proudly serves veterans and other

eligible individuals by providing resources and expertise to assist and prepare them
to maximize their employment opportunities and protect their employment rights.
A range of federally funded services known as the Disabled Veterans’ Outreach

Program (DVOP) and the Local Veterans’ Employment Representative (LVER) Program
are provided to veterans.
Veterans Services
The DVOP and LVER programs provide various types of occupational training, employ-
ment counseling, career readjustment assistance, and job seeker and placement services,
including resume preparation, interviewing skills and techniques, and job matching.
Veterans with Service-Related Disabilities

The law neither prohibits nor requires affirmative action on behalf of individu-
als with disabilities. An employer may hire a qualified individual with a disability
(including a veteran with a service-related disability) over a qualified applicant
without a disability.
Recruitment process for Veterans with Service-Related Disabilities

Employers may post advertisements and vacancy announcements with the DOES Job
Bank. They may also send vacancy announcements and request referrals from the
DOES DC Works Career Centers.
The District of Columbia’s

On-the-Job Training Program
The On-the-Job Training (OJT) Program objective is to assist businesses to provide
training in occupations that meet the needs of the employer. The goal of the OJT
Program is to place participants in occupations that will enhance their prospects for
long-term employment. OJT involves the acquisition of specific skills and employ-
ment competencies, through exposure in an actual work setting, to the processes,
work tasks, tools, and methods of a specific job or group of jobs.
It is a “hire-first” program in which the employer enters into an agreement with DOES
to hire, train, and retain the individual upon successful completion of the training
program. Through this program, businesses may be reimbursed 90% of the new em-
ployee’s wages while they are in training (up to six months).
For many employers, the OJT Program could mean the difference between hiring an
additional employee and remaining understaffed. The OJT Program helps to facilitate
matching job seekers and employers thereby helping new employees learn new job
skills while engaged in productive work for their new employer.
Quick Facts about OJT

• Participants receive no less than the District’s minimum wage ($8.25/hour)
• Training participants must be unemployed
• Employers must be established businesses (in good standing with the District)
• Participating employers receive a reimbursement to cover the extraordinary costs
of training and supervision

Employer Benefits
• Monthly reimbursement – 90% of trainee’s hourly wage up to $34/hour
• Salary must be commensurate with the average wage of that particular position
according to the District of Columbia’s Occupational Employment and Wage
Estimates Data/prevailing wages
• Employer makes all hiring decisions
• Employers save recruiting, screening, and training costs
• Length of training is negotiable
• OJT trainees are treated like regular employees
• Quick approval time
Additional info
• Jobs must be permanent and full-time
• Employers must have Workman’s Compensation or approved on-site accident
insurance
• Training agreement must be approved before trainees begin to work
• Employer must provide a wage of at least $8.25/hour up to $34/hour ($8,000
maximum for paid training)
• Employer must retain OJT employee for at least six months after completion of
training
• Trainees abide by the same company policies as other employees (and receive
same benefits as employees in similar positions)
• Employer will be monitored by the OJT Team
Exclusions
• Applicant cannot be related to owner or supervisor of firm
• Applicant cannot be hired by former employer2
• Jobs depending on a commission only as the primary source of income (e.g.,
insurance sales) are not eligible
• State and federal jobs are not eligible
• Intermittent seasonal occupations are not eligible
• Contract assignments — any occupation — are not eligible
Reimbursement Schedule for Participating Employers

The training wage reimbursement is based upon the size of the employer:
• Small employers (fewer than 51 employees) are reimbursed 90% of wages paid
during training
• Medium-sized employers (between 51 and 250 employees) are reimbursed 75%
of wages paid during training
• Large employers (over 251 employees) are reimbursed 50% of wages paid during
training
2 Case-by-case basis: Timeframe must be at least three months or more to rehire (for example, if a person
was laid off and is brought back by employer, they may be eligible for OJT)

District of Columbia Participant Eligibility Criteria

To participate in this OJT initiative you must be:
1. A resident of the District of Columbia

2. Laid-off by your previous employer after January 1, 2008
3. Actively seeking and available for work
Understanding Employment and

Labor Laws
The District of Columbia has specific laws concerning the hiring, firing, and treatment
of employees. Several agencies and nonprofit organizations offer assistance to under-
standing employment and labor laws in DC:
The Small Business Administration,a federal agency devoted to helping small busi-
nesses, offers a counseling service (SCORE), and can provide guidance on a range of
human resource topics.
The DC Chamber of Commerce Business Resource Center (DCCCBRC)provides tech-

nical assistance to small business owners on many issues, including employment laws.
202.545.0220 | www.brc.dc.gov/gabrc
Worker’s Protection and Labor Standards

The Department of Employment Services (DOES) plans, develops and administers
employment related services to all segments of the District of Columbia population.
DOES houses up-to-date information on a broad range of labor topics including:
Wage Hour Laws

Effective July 24, 2009, the minimum wage in the District of Columbia is $8.25/hour; if
you are a restaurateur, however, the minimum wage for your tip earning staff is $2.77/hour.
Other wage hour laws to take note of include the Wage Payment and Wage Collec-
tion Law, the Wage Garnishment Law, the Seats Law and the Wage Hours Rules.
Workers’ Compensation Program WDCEP Tip

This program is designed to ensure that your employees who may become injured or DOES hosts up-to-date information on
disabled on the job are provided with fixed monetary awards. labor standards and laws on its web-
site. For additional information visit
Occupational Safety and Health www.does.dc.gov.
The Office of Occupational Safety and Health (OSH) provides onsite consultation
services to private-sector employers in the District of Columbia. OSH establishes and
maintains a safety and health management program that ensures, to the maximum
extent possible, a safe and healthy work environment for employees.
Alien Certification
Find out if you can hire workers from abroad to help grow your business. The Immi-
gration and Nationality Act of 1965 stipulates that certain aliens may obtain a visa to
enter the U.S. and engage in permanent employment.

Child Labor Laws

No minor under 18 can be employed for more than six consecutive days in any one
week or more than 48 hours in any one week or more than eight hours in any one day.
Leave Acts
One of the newest, and most unique, laws to DC—the DC Accrued Sick and Safe
Leave Act, which became effective May 2008—requires that DC employers provide
paid leave to employees for physical and mental illness, preventive medical care,
family care and certain absences associated with domestic violence or sexual abuse.
The amount of leave an employer is required to provide depends on the size of the
organization or business.
The DC Family Medical Leave Act requires employers with twenty or more employees
in the District of Columbia to provide 16 weeks of job-guaranteed medical leave to
qualified employees with a serious health condition every 24 months. Note that this is
four weeks more than the 12 weeks required by federal law. Similarly, the DC Parental
Leave Act entitles an employee up to 16 weeks of family leave during a 24-month
period for the birth or adoption of a child or to care for a family member.
DC Office of Human Rights | 202.727.4559 | www.ohr.dc.gov
Human Rights Laws

The federal government has strict laws that forbid employment discrimination based
on race, sex, color, religion, national origin, age, pregnancy or physical disability. DC’s
Office of Human Rights provides free Equal Employment Opportunity (EEO)-related
Learn with the WDCEP

the Washington, Dc economic partnership
pRoviDes DC BUsinesses With
• site location assistance • economic Data
learn • Development information • Business Development seminarsInteract

• neighborhood Demographics

training sessions. The Equal Pay Act, which applies to all businesses, requires that
women doing the same job as men be paid the same salary. The Americans with Dis-
abilities Act (ADA) is a federal civil rights law that prohibits the exclusion of people
with disabilities from participating in everyday activities. As a business owner, you
need to be especially aware of ADA guidelines if you have more than 15 employees.
ADA | 800.514.0301 | www.ada.gov
If your business has 20 or more employees, take note of the Age Discrimination in
Employment Act. Age discrimination occurs when an individual is treated unfavorably
in his or her employment situation because of his or her age. Sexual harassment
laws are another concern for growing businesses. Consider adopting written policies
that protect employees from being fired, or not being promoted, because of failure to
succumb to the sexual advances of their superiors or sexual comments or references that
can make them feel uncomfortable in the workplace. To set up a training program at
your company’s site on topics such as basic EEO training, diversity training, and sexual
harassment training, contact the DC Office of Human Rights.
Information Required to Display Visibly

Employers in the District of Columbia are required by law to display specific employ-
ment-related posters in locations accessible to their employees. A listing of these
posters, and the appropriate District of Columbia Government offices where they may
be obtained, is provided below:
Wage and Hour

Office of Wage-Hour | 202.671.1880 | www.does.dc.gov
Unemployment Compensation
Office of Unemployment Compensation | 202.724.7072 | www.does.dc.gov
Workers’ Compensation (Private Sector)

Office of Workers’ Compensation | 202.671.1000 | www.does.dc.gov
Occupational Safety and Health (Private Sector)

Office of Occupational Safety and Health | 202.671.1800 | www.does.dc.gov
Child Labor Law

U.S. Department of Labor | 866.487.9243 | www.dol.gov
Family Medical Leave Act

Equal Employment Opportunity


Amsterdam Falafel in Adams Morgan adjusted their insurance holdings as the business grew and they obtained a patio license.
Business Insurance
7
Workers’ Compensation Insurance, Business Property and Liability,
Bonding, DC Captive Insurance
Contributors: The DC Department of Insurance, Securities and Banking
A significant part of any business planning is dealing

with potential exposure to loss. Commercial insurance
facilitates the transfer of potential business-related
risks to an insurance company for a price or premium.
The DC Department of Insurance, Securities and Banking (DISB), www.disb.dc.gov,
regulates the financial-services industries in the District of Columbia by administer-
ing District insurance, securities and banking laws, rules, and regulations. The District
government agency oversees insurance companies and producers, broker-dealers,
mortgage lenders, check cashers, and District-chartered banks, to name a few. The
DISB aims to provide a positive business climate that encourages fair and open com- WDCEP on YouTube
petition, and to increase the number of financial-services firms conducting business Search Business Insurance at
www.youtube.com/wdcep1495
in the District.
One of the insurance resources the DISB has promoted is Insure U for Small Busi-
ness. Created by the National Association of Insurance Commissioners, of which the
DISB is a member, Insure U for Small Business is a comprehensive public educa-
tion program to assist small businesses with information about business risks and
insurance options. Insure U for Small Business includes an online education site and
public service announcements in English and Spanish.
Business Insurance
Overview of Types of Business Insurance

WDCEp Tip The Insure U for Small Business curriculum includes six categories of vital information
The Insure U for Small Business curriculum to small businesses:
is available online at
www.insureUonline.org/smallbusiness. • Workers’ Compensation
• Group Health and Disability
• Business Property and Liability
• Commercial Auto
• Group Life and Key Person Life
• Home-based Business Insurance
Workers’ Compensation Insurance

Workers’ compensation insurance protects a business owner from claims made by
employees who experience work-related injuries or illnesses—sustained either on
business premises or due to business operations. In the District, most companies are
required to carry workers’ compensation insurance for their employees. You will need
a separate workers’ compensation policy for this type of coverage. Check with the
DISB to see what is required for your business.
Typically, workers’ compensation covers the employee’s medical expenses, rehabilita-

tion costs and lost wages. If you do not have workers’ compensation and one of your
employees is injured on the job, your business may be liable for any medical expens-
es that individual incurs. You might also face fines and penalties for noncompliance.
The U.S. Department of Labor’s Occupational Safety & Health Administration (OSHA)
offers specific information by industry type and provides other helpful resources to
small businesses on how to comply with safety requirements that can limit work inju-
ries. To learn more, visit the OSHA website at www.osha.gov/dcsp/smallbusiness.
The District’s Office of Workers’ Compensation within the DC Department of Employ-

ment Services (DOES) processes claims and monitors the payment of benefits to injured
private-sector employees in the District of Columbia. The program mediates disputes,
monitors employer compliance, and administers the Special Fund, which provides
benefits in cases of uninsured employers or in situations where an injury combines with
a pre-existing disability and causes a greater disability.
DC Department of Employment Services

Labor Standards Bureau | Office of Workers’ Compensation
4050 Minnesota Avenue, NE | Washington, DC 20019
202.671.1000 | www.does.dc.gov
Group Health & Disability

Providing health insurance for employees is one of the greatest challenges many busi-
nesses face today. As business owners know, health insurance is extremely important
to most employees and is therefore a very powerful benefit in recruiting and retaining
the best workers. Cost and availability of health insurance are key issues.
Small group health insurance provided by insurers is regulated by the District of

Columbia. Federal law mandates that an insurer cannot deny coverage to a small

Workers’ Compensation Insurance, Business Property and Liability, Bonding, DC Captive Insurance
business due to the health status or illness of its employees or their dependents. In
addition, self-insured health plans (where an employer insures itself), are regulated by
a federal law called ERISA (Employees Retirement Income Security Act of 1974). It is
rare for a company to self-insure its health insurance.
Business owners are not legally required to offer health insurance. However,
under federal law, the Patient Protection and Affordable Care Act (PPACA), which
was passed in 2010, the United States is moving in the direction of requiring
health insurance for most people by 2014. Here, in the District of Columbia, efforts
are currently underway to establish the Small Business Health Options Program
(SHOP) health insurance exchange by 2014. With authority granted by PPACA, and
in conjunction with the District of Columbia Health Insurance Exchange (DC HIX),
small businesses will gain unprecedented leverage in purchasing health insurance
coverage for their employees. The SHOP exchange is intended to pool all eligible
small businesses in the District into one group, thereby, spreading risk across
a vast number of individuals and families while yielding costs that are similar to
those currently associated with large corporations and governmental entities. In
addition, small business owners who purchase coverage for their employees
on the exchange will be eligible for a tax credit of 50%of the cost of providing
health insurance for their employees.
WDCEP Tip
Small businesses should check with the DISB to understand the current laws in For any additional questions or con-
the District of Columbia and determine how they may affect your organization. cerns regarding the various forms of
202.727.8000 | @DCDISB | www.disb.dc.gov business insurance, please contact the
Small Business Administration (SBA).
www.sba.gov | 800.827.5722
Group Disability Insurance
As a business owner, you may want to consider offering disability insurance to your
employees should they become ill and unable to work. There are two types of dis-
ability insurance:
• Short-term disability covers a portion of the policyholder’s salary for a short peri-
od, typically from three to six months following a disability. The specific period and
percentage of replaced income varies with different policies. According to the
Small Business Administration (SBA), employers may specify a number of days of
sick leave paid at 100% of salary. The employee can use these before short-term
disability begins.
• Long-term disability coverage typically begins after the policyholder is disabled
and unable to work for at least six months. It can extend for a specified number
of years or until the insured retires or reaches the age of 65, depending on the
policy selected.
Commercial Property & Liability

Commercial property insurance protects small business owners from losses due
to damage to physical space or equipment, or as a result of theft. For insurance
purposes, a business’s property includes the physical building in which it resides, as
well as its other assets, including machinery, computers and other data processing
equipment, signs, fences, non-tangible items such as trademarks and copyrights,
and inventory.

Business Insurance
WDCEP Tip There are three types of commercial property insurance plans:
All of the following, owned or leased,
can be considered business property: • Basic form, which includes losses resulting from fire, lightning, windstorm, hail,
the actual building; inventory; furniture, and explosion, plus the cost of removing property to protect it from further
equipment and supplies; machinery; damage
computers and other data processing
• Broad form, which includes basic plus extended coverage for other types
equipment; valuable papers, books and
documents; artwork and antiques; tele- of perils, such as a roof collapse (e.g. caused by snow or ice), riot, and civil
vision sets, VCRs, DVD players, satellite commotion
dishes; signs, fences and outdoor prop- • Special form, which includes basic and broad, and covers all direct physical
erty not attached to a building; and losses except conditions specifically excluded as listed in the policy
non-tangible items such as trademarks
and copyrights. With property insurance you can buy either actual cash value or replacement cost
insurance. Actual cash value insurance reimburses you for the value of lost, damaged
or stolen goods after depreciation. Replacement cost insurance reimburses you the
amount it would take to replace, rebuild or repair damages with materials of similar
kind and quality, without deducting for depreciation.
Business Interruption/Continuation Insurance

This type of insurance covers lost earnings due to circumstances identified in the
policy that shut down or decrease your business for an extended period of time. Busi-
ness interruption/continuation insurance covers expenses associated with running a
business — such as payroll and utility bills — based on the company’s financial records.
Business interruption/continuation coverage can be added to a property insurance
policy or purchased as part of a package insurance product.
Liability Insurance
If someone trips or falls while visiting your premises, or if a customer is hurt by a
product your business sells, you can be held responsible. These are risks that liability
insurance covers.
Liability insurance, also called Commercial General Liability (CGL), covers four cat-
egories of events for which you could be held responsible: bodily injury; damage to
others’ property; personal injury, including slander and libel; and false or misleading
advertising. CGL coverage pays for the injured party’s medical expenses. It excludes
your employees, who are covered by workers’ compensation.
There are three types of legal damages people may sue you for that are typi-
cally covered by a CGL policy:
• Compensatory damages: financial losses suffered by the injured party and future
losses they may suffer resulting from an injury they claim in a lawsuit
• General damages: non-monetary losses suffered by the injured party, such as
“pain and suffering” or “mental anguish”
• Punitive damages: additional penalties and charges awarded to an injured party
that go beyond that which is necessary to compensate the individual for losses,
and that are intended to punish the wrongdoer

Standard liability insurance does not protect a business against:
• Claims from sexual harassment, wrongful termination of employees, failure to

employ or promote, or race and gender lawsuits;
• Claims related to operating an automobile or truck; or
• Wrongful practices by professional service providers (e.g.: health care providers, law-
yers and consultants). Professional liability insurance, Errors and Omissions insurance
or Directors and Officers insurance is needed to cover these events. For additional
information on these specialized types of coverage, contact your insurance broker or
DISB. As with other liability insurance policies, premiums for professional liability cov-
erage depend on the type of professional service being provided and its level of risk.
Other types of liability insurance:
• An umbrella liability policy provides more comprehensive protection than a stan-

dard policy. Umbrella policy coverage limits are typically within the $1 million to
$5 million range and are appropriate for business owners who have large assets
or may be especially vulnerable to lawsuits.
• Crime Insurance protects businesses from theft and malicious damage, such as
employee embezzlement.
• “E–insurance” or Internet Business Insurance covers web-based businesses for
damages caused by computer hackers and viruses.
Commercial Auto Insurance

All motorized vehicles, whether used for personal or business purposes, need auto
insurance. Automobile liability insurance covers medical expenses for injured persons
and damages to the property of other individuals as a result of a motor vehicle ac-
cident caused by the insured’s negligence.
While the types of coverage provided by personal and commercial auto insurance
policies are essentially the same, there are important distinctions. Typically, commer-
cial auto insurance policies have higher liability limits, for example $1 million. They
may also have provisions that cover rented and other non-owned vehicles, including
employees’ cars driven for company business.
Several factors related to ownership, and use of vehicles determines whether a per-
sonal or commercial policy is appropriate. These include:
• Who owns or leases the vehicle — you individually or the business as an entity?

• Who drives the vehicle — you or your employees?
• How the vehicle is principally used — for transporting people? Delivering pack-
ages? Or carrying hazardous materials? You may also want to consider the pur-
chase of collision and comprehensive (other than collision) coverage to protect
yourself against damage to your vehicle.
Group Life Insurance

Some business owners offer group life insurance to employees. Group life insurance
can be part of an employee benefit plan that is paid for by the employer, or a volun-
tary offering, whereby the employee pays for the coverage.

Business Insurance
For policies paid for by a business owner, the benefit can often be equivalent to a full
year’s salary, an amount that may not be sufficient for some people. These types of
policies can be viewed as an added benefit or “supplemental” to other life coverage
an employee may already have. If an employee wants additional coverage on top of
what an employer is willing to purchase, amounting to double or triple times his/her
salary, he or she may have to pay for it individually instead. Purchasing additional cov-
erage outside of what is offered through the group policy will likely require that the
employee undergo a medical exam to determine the level of insurability based on his
or her health. However, a voluntary life insurance policy can provide significantly more
coverage, depending on the amount of money an employee wants to spend individu-
ally for that type of policy.
Group life insurance policies tend to be less expensive than those purchased individ-
ually based on the fact that many group policies are only effective while an employee
within the group is employed at that particular company. Most group life insurance is
sold on a term basis. Term life insurance pays a death benefit if the policy holder
passes away within a specified period.
In general, term life insurance is much less expensive than permanent life. In fact,
term life premiums have decreased markedly during the past decade due to the fact
that Americans are living longer.
To figure out a group rate, the insurance company will usually consider the follow-
ing factors about a business: the number of employees within the group; average age of
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employees; ratio of females to males (based on the statistic that women tend to live longer
than men); number of smokers; and risk factors associated with the business.
Based on the business risk, for example, a marketing firm would probably have a lower
group rate than a roofing company for equivalent coverage. Generally, group life
insurance policies are a “guaranteed issue,” meaning that employees do not need to
undergo a medical examination to be eligible. An employee who has a serious medical
condition may still be a part of the group, as long as he or she is still an active worker.
However, employees out on disability leave are not eligible for group life insurance until
they return to work, unless they went on leave after the policy had been issued.
Key Person Life Insurance

Within a small company, there are typically some “key people” who are critical to the
success of the business. These individuals may be limited to the business’ founders
or partners, or defined more broadly to include other employees responsible for running
a critical aspect of the business, such as the senior marketing or sales manager, chief
engineer or software developer in the case of a technology company.
The death of any of these key people would likely cause a serious impact on the business’
bottom line. Therefore, many small firms choose to purchase Key Person life insurance
policies on these very important employees. As the policy owner, the company is the
beneficiary and receives the proceeds when the insured key employee dies. The payout
can help the company by providing:
• Cash to weather the loss and continue operations until a new employee can be
hired and trained to carry out the functions of the deceased; and/or
• The funding to buy out the key person’s heirs, if ownership rights of the business
are involved.
In some cases, a small business seeking a loan from a bank or trying to raise capital
from outside investors may be required by the lender or investor to carry life insur-
ance for its partners. The bank may even require that the small business provides a
collateral assignment agreement that gives the bank first rights to the policy proceeds
to cover outstanding loans due in the event of one of the owner’s deaths.
Types of Key Person Policies

Like individual life insurance policies, Key Person life insurance policies may be pur-
chased as term life or permanent life policies.
Term life insurancecovers the insured for a term of one or more years. It pays a death
benefit only if the insured dies within that term. Term insurance generally offers the
best value for your premium dollar. However, it does not build up cash value. It may
not be renewable at the end of the term or may cost considerably more to continue.
Permanent life insurance,which goes by several names, such as whole life, universal
life and/or variable life, typically includes both a death benefit and cash value.
Because of the cash value element, premiums for permanent life insurance tend to be
higher than for term life insurance.

Business Insurance
Home-Based Business Insurance

Home-based businesses—those exclusively run from a home and no other location—
comprise roughly half of all U.S. businesses and generate a huge amount of economic
activity, according to the Small Business Administration. Some of the major types of
home-based businesses are the following:
• Professional, scientific and technical services

• Consultants and freelancers
• Construction
• Retail
• Specialized services (e.g. music instructors, day-care, etc.)
While some home-based businesses grow into full-fledged companies that employ
substantial numbers of people, most remain quite small:
• 90% are sole proprietorships

• 7.2% have between 2– 4 employees
• Just over 1% has 5–19 employees
• About 0.2% has 20 or more employees
Regardless of their exact size or type, home-based businesses, like all businesses,
should be properly insured to protect their assets and their owners against certain
risks. Often, home-based businesses are underinsured — a fact their owners discover
after an incident occurs.
Types of Insurance to Consider

If you have a home-based business or are thinking about starting one, it’s a good idea
to learn about the range of insurance products available. While your specific business
may not require all types of insurance listed, it is important to understand your poten-
tial risks and your insurance options.
Home-based business owners should consider the following types of insurance:
• Workers’ compensation insurance

• Property and liability insurance
• Commercial auto insurance
• Disability insurance
• Life insurance
Bonding
An insurance bond offers assurance that one party will be responsible for the faith-
ful performance of another party. There are four general types of bonds available for
small businesses to perform work or services for others:
• Bid or Tender Bond

• Performance Bond
• Payment Bond
• Maintenance Bond

A Bid Bond is a type of surety bond issued by surety or insurance companies special-
izing in this type of product. It is taken out by an entity during the bidding process for
a project; and it guarantees that the successful bidder will enter into contract once
the bid is accepted, and will furnish a Performance Bond.
A Performance Bond guarantees that the entity will perform and complete the work
in accordance with the contract and related documents.
A Payment Bond ensures that the project is free from liens, and may protect against
nonpayment.
A Maintenance Bond guarantees that the work is free from defects in workmanship
and materials for a designated period.
Most capital work projects put out to tender require the successful tender to lodge Definition
bonds after being awarded the contract. Contact your insurance company to find out Tender: To make or submit a bid/offer/
what they offer. You may also visit www.businessinsurance.com for general business proposal.
insurance information.
DC Captive Insurance
Captive Insurance is a relatively new type of insurance that allows large organizations WDCEP Tip
to insure themselves instead of seeking insurance on the commercial market. For general inquiries about business
insurance in the District of Columbia,
A captive insurance company, or captive, is an insurance company owned by mem- contact the D.C. Department of Insur-
bers of a common industry or trade association in order to share the risks of that ance, Securities and Banking (DISB)
industry among its members. at 202.727.8000 or visit its website at
www.disb.dc.gov.
Captives allow associations, organizations and groups to take financial control and
manage risks by underwriting their own insurance rather than paying premiums to
third-party insurers. The potential advantages of such self-insurance include lower
costs, protection tailored to the organization’s needs, more control over risks, and
tighter control over financial resources.
The Department of Insurance, Securities and Banking | Captive Insurance Division


Gina Schaefer has successfully brought Ace hardware into the city using a franchise model.
Starting a Franchise
8
Establishing an Existing Franchise, Franchising Your Business
Contributors: International Franchise Association | U.S. Small Business Administration | DC Small Business Resource Center
Franchising has been a driving force in the U.S. economy

for several decades. In Washington, DC 26,000 jobs are
directly tied to franchised businesses1. Franchising is a
solution for people who want to own and operate their
own business, while working under an established brand,
benefitting from the experience and know-how of the
franchisor. Franchises can offer you, the franchisee, a
complete system of doing business, from branding
and marketing to assistance with business set up, person- WDCEP on YouTube
Search Starting a Franchise at
nel training, and product supply. www.youtube.com/wdcep1495
Think Before You Start

Ask yourself the following questions before making your decision to buy a franchise
to avoid the potential risks and difficulties:
• Is the business you’re considering a brick and mortar operation (like a restaurant
or hotel)?
1 The Economic Impact of Franchised Businesses: Volume III, Results for 2007
• Is the grant of the franchise contingent upon the franchisee being able to obtain
and maintain a lease for the selected location?
Benefits of Franchising Answers to questions regarding leases and build-out requirements should be ex-
• Buying the franchisor’s experience plored in the early stages of your research. Real estate expenses, coupled with build
eliminates some of your start-up out and equipment purchases, can make franchising a costly venture for up and com-
headaches ing entrepreneurs.
• Learning and training from the fran-
chisors prepares you for the facets Which Business to Choose
of the business
Franchises are often thought of as fast food restaurants and hotel chains. In actuality,
• Buying and advertising in bulk franchising spans more than 1,000 industries. When looking into franchise opportuni-
reduces your costs for inventory ties, think broadly about what you would find interesting to do and what is of need
products and advertising
and interest to the community you would like to serve.
• Benefiting from brand recognition
of the trademarks that represent the Franchises can be home-based or mobile-based. These operations include home
quality and integrity of the brand to cleaning operations, on-the-go dog grooming salons, computer assistance compa-
consumers
nies, techs on call, and mobile interior design services, among others.
Understand the Information

As a potential franchise owner, you will need to review the company’s franchise disclo-
sure document, also known as offering circular, franchising disclosure document, or
prospectus. The Federal Trade Commission and state laws require the franchisors to
deliver disclosure documents to prospective franchisees. The disclosures cover more
than 20 items of information regarding the history of the company, required fees,
investment costs, etc. This information can help you choose the right franchise oppor-
tunity. Disclosure documents can be obtained through a few private companies listed
on the FTC website (www.ftc.gov). While franchisors typically offer assistance during
the start-up process, developing a well-written business plan is crucial to the financing
and ultimate success of your franchise operation. Your business plan should include
three main sections—description of business, marketing, and financial — as described
in Chapter 1: Starting a Business in DC.
Finance your Franchise

When considering your options for financing your franchise, it is important to remem-
ber that financing will most likely come from multiple sources. Lending institutions
such as commercial banks and independent financing specialists will consider invest-
ing in your franchise upon presentation of your business plan. Again, this is why it is
crucial to have a clear, concise, and well-articulated plan.
Expected Costs
Total start-up costs for a franchise can range from $20,000 or less, to over $1,000,000,
depending on the franchise selected, and whether it is necessary to own or lease real
estate to operate the business. Typically, higher cost franchises involve not only the
initial franchise fee and expenses, along with continuing royalty payments, but also the
cost of opening shop including real estate and equipment.
Complete financing should not be expected. According to The International Franchise

Association, a typical franchisee provides between 20%–30% of the total capital re-
quired to get their new business up and running. Depending on the type of franchise

Establishing an Existing Franchise, Franchising Your Business
you pursue, this could mean you need to come up with roughly $40,000 to $60,000 on a
$200,000 transaction. This capital can come from savings, stocks, bonds, pensions, IRAs, Franchising Challenges
property, etc. Conformity to the franchise system
limits your ability to personalize the
business. Tremendous investment of time
Source of Financing
and hard work is expected to manage
Traditional Loans
your business. Costs featuring royalties
Traditional loans usually include commercial bank loans or feature independent and potential payments on a certain
financing specialists. Banks and other conventional financial institutions are often percentage of your gross income from the
more willing to work with franchises than independent enterprises. The franchi- franchise reduces your profits.
sor’s established trademark and market experience give you a lower financial risk
than an independent business. This means that an entrepreneur’s chance of re-
ceiving a loan is significantly improved when his or her venture is associated with
a recognized franchise. In addition, your prospective franchisor may already have
connections with lending institutions that could be of use to you.
The Small Business Administration (SBA)

Consider speaking with representatives of the Small Business Administration (SBA)
about the existing programs they have with private banks and other lending institu-
tions. The SBA frequently offers competitive rates and longer term programs that can
be of assistance to you. For more information visit www.sba.gov.
Direct Franchising from the Franchisor

In some cases, franchise companies either offer financial assistance themselves or
help franchisees find lenders with whom they have pre-existing relationships, known
as preferred lenders. Ask your franchise company if they offer direct financing pro-
grams, loan guarantees, or leasing for property or equipment.
Additional information on business financing, including factors of consideration, the For More Information
loan process, small business lenders, equity financing, and other sources of funding is • Contact the International Franchise
Association (www.franchise.org;
available in Chapter 3: Business Financing.
202.628.8000) for their Franchise
Opportunities Guide. They also
Franchise Your Existing Business offer a free online course called
Franchise Basics
Franchising can be an ideal solution for entrepreneurs who want to expand their
www.ifa-university.com
businesses but may lack capital, can’t find adequate human resources, or simply don’t
• Attend the IFA’s annual Interna-
have the time to grow their own operations organically.
tional Franchise Expo, which takes
place every spring at the Walter
Why Should You Franchise? E. Washington Convention Center
Franchise can give you the arms and the legs you need to expand more quickly and in DC
may alleviate some of your business’s growing pains. • Visit the Federal Trade Commis-
sion’s website for information on
Franchising allows you to explore your potential
government regulations
You may want to consider franchising your business if: www.ftc.gov
• Your product or service has a good reputation and is perceived as being credible
• Establish a working relationship
in the marketplace with the Small Business Association
• Your business can generate at least 15% return on investment for franchisees www.sba.gov
• Your business is somehow different from existing businesses in the marketplace • Discuss disclosure documents and
other legal and financial statements
• Your methodology can be transferred to a franchisee
with a lawyer and an accountant
with franchise experience

Franchising relieves some of your growing pains

• Lack of Capital: Franchising can help you expand your business without the risk
of debt of the cost of equity. It’s the franchisee who signs the lease and assumes
the service contracts, leaving the franchisor with limited liability.
• Finding and Retaining Human Resources: Many businesses can’t expand
because they can’t find, or keep, well-qualified unit managers. The franchising
model puts the onus of finding staff on the franchisee.
• Time Considerations: The number of units you can open in months or years can
be significantly greater if you encourage others to assist with identifying loca-
tions, recruiting employees, and/or purchasing equipment.
How to Franchise Your Business

If you are interested in franchising your business, start by speaking with counselors at
the District of Columbia’s Small Business Resource Center (SBRC). You can reach them
at 202.442.8170.
Typical steps for expanding a business through a franchise plan include:
1. Develop a comprehensive plan. Elaborate in detail on issues such as expansion

timing, geographic considerations, and support services for franchisees, advertis-
ing programs, and a fee structure.
2. Subject your expansion plan to the scrutiny of legal and financial experts.
Get feedback and revise your plan.
3. Hire a lawyer and obtaining proper legal documentation such as a franchise
contract and an offering circular.
4. Develop a fool-proof system for your franchisees. This includes operation
manuals, policies, and procedure checklists.
5. Market your franchise. Develop brochures, collateral material, etc. that will
entice prospective buyers.
If you plan to franchise, be certain to hire a lawyer who specializes in franchising and
fully understands the intricacies of the pre-sale disclosure documents.

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Starting a Nonprofit
9
Organization
Steps in Establishing a Nonprofit Business, Grants & Other Resources
Contributors: The DC Department of Consumer and Regulatory Affairs | Newmark Knight Frank
The District of Columbia is home to the largest

concentration of nonprofits and associations in the
United States with over 12,500 nonprofit organizations1
located in the city. A nonprofit organization is an
incorporated organization which exists for educational
or charitable reasons, and from which its shareholders or
trustees do not benefit financially. Nonprofit organiza-
tions are active in humanitarian aid, education,
the arts, the environment, animal protection and WDCEP on YouTube
Search Starting a Nonprofit at
other endeavors. www.youtube.com/wdcep1495
Establishing a Nonprofit Business

The most important components to start a nonprofit include a sound mission state-
ment, a concept paper, defined organization type (business structure), established
board of directors, bylaws, a strategic plan, and identified sources of funding.
1 Internal Revenue Service, Exempt Organizations Business Master File (March 2012)
Starting a Nonprofit Organization
Determine the Mission

The mission statement is a brief description of an organization’s purpose. It should be
clear, focused, and concise. It is best to limit the statement to one or two sentences.
The statement should include the organization’s name, the services it provides, and de-
scribe the population it serves. Nonprofit mission statements generally do not change,
unless the organization’s purpose changes significantly. It should, however, be re-evalu-
ated to ensure mission and operational alignment every five to ten years.
It is recommended that you research nonprofits with similar missions, in order to

ensure your organization provides different and better services compared to other
nonprofits. Remember to make your organization unique and focus on your values.
WDCEP Tip Develop a Strategic Vision and Plan

The strategic plan is much like a busi- Much like a business plan, a nonprofit’s strategic plan details the organization’s direc-
ness plan. For more detailed information, focus, and vision for the next three to five years. Deviation from the nonprofit’s
tion please refer to Chapter 1:
organizational mission is often an issue that arises for nonprofits. In the quest to solicit
Starting a Business in DC.
funding, nonprofits sometimes take on programs that are outside of their mission.
Having a sound strategic plan can help alleviate this issue. Strategic plans should
include the following:
• Purpose and mission statement

• Survey of the issue(s) and problem(s)
• Description of the organization
• General goals and activities
• Future plans and vision
WDCEP Tip
Each category has different tax benefits
Determine the Organization Type
and is required to comply with different
While the majority of nonprofits are classified under 501(c)(3) of the IRS Code as charita-
restrictions. For more information on tax
exemptions for each type of nonprofit, ble organizations, a proposed organization should review the types below to determine
visit www.irs.gov/charities/nonprofits. the right choice for its particular group. Once the organization’s classification has been
defined, articles of incorporation, the primary rules governing the management of your
organization, should be drafted. You should have these articles reviewed by a lawyer.
The classifications for nonprofits are:
• 501(c)(3): Charitable or Religious Organizations

• 501(c)(4): Social Welfare Organizations
• 501(c)(5): Labor and Agricultural Organizations
• 501(c)(6): Business Leagues
• 501(c)(7): Social Clubs
• 501(c)(8) or (10): Fraternal Societies
• 501(c)(19) or (23): Veteran’s Organizations
• 501(c)(4) or (9): Employee Associations
Establish a Board of Directors

The board of directors ensures the organization’s mission is carried out and pro-
vides legal accountability for its operations. It is best to develop a diverse board of

directors, who offer a variety of professional skills that represent the organization’s
service recipients, contributors, volunteers, and community members.
The primary functions of the board of directors are often financial oversight and
fundraising, yet there are many other responsibilities depending on the needs of the
organization such as: developing the organization’s mission statement, strategic
planning, hiring an executive director and staff, deciding on organizational and per-
sonnel conflicts and evaluating the nonprofit’s programs, services and performance.
Register Your Organization

All nonprofits need to register with both the DC Department of Consumer and Regu-
latory Affairs (DCRA) and the DC Office of Tax and Revenue (OTR) in order to operate
in DC.
Register with DCRA

To register with DCRA, visit its website and go to “Corporate Registration” (under
Licensing/Registration) to complete all forms online. If you plan to engage in
charitable solicitation activities (i.e. grants, funds, etc.), you will need to obtain a
Charitable Solicitation registration from the Basic Business License department of
DCRA. If you are a church or religious organization with tax exempt status under
IRS Section 501, you do not need to complete this form.
Register with OTR

To register with the Office of Tax and Revenue, you need to fill out the FR 500 form
(Combined Business Tax Form) regardless of your nonprofit type. If you have unre-
lated business income, such as renting part of your facility, you also need to fill out
Form D-20 (Corporate Franchise Tax Return).
To seek exemption in DC, you must first gain that status from the Internal Revenue Ser-
vice and attach that exemption document to Form FR 164, Application for Exemption
from Income and Franchise Tax, Sales and Use Tax, or Personal Property Tax. You can fill
out your forms online at OTR’s Electronic Taxpayer Service Center website.
202.727.4TAX (4829) | @DC_OTR | www.taxpayerservicecenter.com
Develop the Bylaws

Bylaws define how the nonprofit organization will be managed and operated. The
bylaws should:
• Define the basic organizational structure of the nonprofit

• Determine which staff and board members have authority and decision making
responsibilities and how those responsibilities are carried out
• Define the requirements and responsibilities of membership
• Create a framework for the organization and aid in resolving internal disputes
• Describe the rules for calling board meetings and specify board member election
procedures

Holland & Knight business lawyers can advise, guide and protect your interests. Whether you are an entrepreneur
or business that is relocating or expanding to Washington, D.C., our professionals can help you make decisions
that balance your business opportunities against the risks involved.
No matter what industry you are in or how complex the transaction, we are dedicated to meeting
your legal service needs.
www.hklaw.com
Washington, D.C. | 202.955.3000
Copyright © 2012 Holland & Knight LLP All Rights Reserved
expLore with the WDCEP

learn
• Development information Interact
• Business Development seminars

Grants & Other Resources

A significant amount of money for nonprofits comes from grants and donations. The
WDCEP Tip
following resources are helpful for searching, writing and applying for grants:
It is important to register for a solici-
tation license so that you are able to
Center for Nonprofit Advancement
fundraise. You can obtain a Charitable
The Center for Nonprofit Advancement is a membership association of nonprofit
Solicitation registration form at the:
organizations based in the Washington, DC metropolitan area.
1666 K Street, NW | Suite 440 | Washington, DC 20006 Business License Center
202.457.0540 | @CenterNonprof | www.nonprofitadvancement.org 1100 4th Street, SW
Office of Partnerships & Grant Services 202.442.4400 | @DCRA
www.dcra.dc.gov
The Office of Partnerships and Grant Services is a DC government agency established to
help advance and assist nonprofits. The Office holds trainings and conferences and has a
free resource center that provides information about public and private grantmakers.
1350 Pennsylvania Avenue, NW | Suite 324 | Washington, DC 20004
202.727.8900 | @OPGSDC | www.opgs.dc.gov
American Society of Association Executives

The American Society of Association Executives is an organization designed to help
association professionals achieve higher levels of performance by providing them
with useful tools to lead and manage.
1575 I Street, NW | Washington, DC 20005
202.371.0940 | @ASAEcenter | www.asaecenter.org
Foundation Center
The Foundation Center is a leading authority on philanthropy. Its mission is to
strengthen the nonprofit sector by advancing knowledge about U.S. philanthropy.
1627 K Street, NW | Third Floor | Washington, DC 20006-1708
202.331.1400 | @FCWashington | www.foundationcenter.org/washington
Chronicle of Philanthropy
The Chronicle of Philanthropy is an online newspaper that has daily updated informa-
tion for grant seekers. This site also provides national reports with supplemental
information and stories on other nonprofit organizations, providing a thorough over-
view and best practices for the nonprofit community.
@Philanthropy | www.philanthropy.com
Grants.gov
Grants.gov allows organizations to electronically find and apply for competitive grant
opportunities from all federal grantmaking agencies.
www.grants.gov

The Reeves Center on 14th and U Streets, NW is a hub of DC government offices.
Doing Business with Local
10
and Federal Government
Federal Government Contracting & Certification Programs,
DC Government Contracting & Certification Programs
Contributors: The Department of Small and Local Business Development |
The U.S. Small Business Administration | The DC Office of Contracting and Procurement
District of Columbia businesses are highly favored

when the federal and DC governments need contract-
ing. Both governments have offices or administrations
that do all of their commercial contracting for them
and other special programs for small economically
disadvantaged businesses. There are an abundance of
opportunities for businesses, big and small, to do busi-
ness with the government, especially with the Depart-
ment of Homeland Security and Department of De- WDCEP on YouTube
Search Business with the Gov-
fense. The federal government’s demand has been an ernment at www.youtube.com/
economic engine that helps fuel the region’s job and wdcep1495
population growth.
The U.S. federal government is the largest buyer in the world. For step-by-step in-
structions on acquiring a federal government contract, visit the “Official Business Link
to the U.S. government” at www.business.gov, which has a wealth of information on
the process and requirements of selling to the government.
Doing Business with Local and Federal Government
Federal Government Contracting

General Services Administration
For a general understanding of government contracting needs, visit the General Ser-
vices Administration’s (GSA) website at www.gsa.gov. GSA manages a large portion of
the government’s purchases, including everything from phone contracts to informa-
tion technology services. GSA also procures furniture, office supplies, cars, trucks and
buses. GSA’s Office of Small Business Utilization advocates for small businesses and
Tips for Landing A
Government Contract conducts monthly workshops on how to obtain a GSA Schedules Contract.
• Research your intended buyer.
For more information and small business support, please call 202.501.1021 or email
Know their budget
small.business@gsa.gov. You can also view important information about how to be-
• Develop a customer/agency spe-
come a vendor on GSA schedules at www.gsa.gov/schedules.
cific strategy
• Start with a small order and work FedBizOpps.gov is the only government portal for federal government procurement
from there opportunities over $25,000. FedBizOpps helps federal government buyers and com-
• Allot sufficient time, resources and mercial vendors find one another. Through FedBizOpps, government buyers can post
knowledgeable personnel when their business opportunities directly to the site and vendors seeking to sell to the
seeking a contract federal markets can search, monitor and retrieve opportunities solicited by the entire
federal contracting community. Visit www.gsa.gov for more information and support.
Small Business Administration

The U.S. Small Business Administration (SBA) has numerous programs that provide
preferential treatment to small businesses looking to contract with the federal gov-
ernment. In order to be eligible for these special considerations, your business must
be certified in one of the ways described in this section. The most basic certifica-
tion is the Small Business Certification. The business size criterion is based both on
number of employees and annual income, and is identified with the North American
Industry Classification System (NAICS). Determining the size of your business is a
two step process: first find the NAICS code that best describes your business, and
then determine your industry’s size standard using the SBA Table, available on the
SBA website. Eligible businesses are also all:
• Organized for profit

• Based and operated primarily in the U.S.
• Independently owned and operated
• Not dominant in their fields on a national basis
The certification process involves first registering as a vendor with the government,
and then joining the Central Contractor Registration (CCR) database.
For more information, and to determine if your business is eligible, visit:

www.sba.gov/content/small-business-certifications.
Women-Owned Small Business (WOSB)

Federal Contract Program
Recently expanded, this program targets small businesses owned by women and
economically disadvantaged women, by setting aside certain federal contracts each
year for competition solely among WOSBs. This can be an important advantage for

Federal Government Contracting & Certification Programs, DC Government Contracting & Certification Programs
your women-owned company, as the government must award 5% of its prime and
subcontract dollars to WOSBs. Companies can be self-certified or certified by a third
party; approved third-parties currently include El Paso Hispanic Chamber of Com-
merce, National Women Business Owners Corporation, U.S. Women’s Chamber of
Commerce, and the Women’s Business Enterprise National Council.
DC Women’s Business Center | 202.393.8307 | www.dcwbc.org
Service-Disabled Veteran-Owned Small Business Concerns

(SDVOSBC)
This program sets contracts aside for competition exclusively among service-disabled
veteran-owned small business concerns, and has the ability to award sole source
contracts. Businesses are eligible under the following conditions:
• The Service Disabled Veteran (SDV) must have a service-connected disability that
has been determined by the Department of Veteran Affairs or Department of
Defense
• The SDVOSBC must be small as described by the North American Industry Clas-
sification System (NAICS)
• The SDV must have 51% ownership of the company, hold the highest officer posi-
tion, and control the management and daily operations
HUBZone (Historically Underutilized Business Zone)

The HUBZone program helps small businesses located in distressed urban and rural
communities, known as Historically Underutilized Business Zones, gain access to
federal contracts. The HUBZone program establishes preference for award of federal
contracts to small businesses in these areas. To qualify for the program, a business
(except tribally-owned) must meet the following criteria:
• It must be a small business by SBA size standards;

• It must be unconditionally and directly owned and controlled (at least 51%) by
U.S. citizens, or a Community Development Corporation, an agricultural coopera-
tive, or an Indian Tribe;
• Its principle office must be located within a HUBZone; and
• At least 35% of its employees must reside in a HUBZone
The HUBZone program is charged with providing contracting assistance to qualifying

small businesses in order to promote job growth, capital investment and economic
development in HUBZone areas. Federal procurement officials have a goal of contract-
ing at least 3% of their contracting dollars to HUBZone certified small businesses.
These businesses have an opportunity to participate and potentially receive contract
awards stemming from this overall goal.
There are three types of HUBZone contracts:

1. Set-aside contracts (if multiple HUBZone businesses submit offers)
2. Sole-source contracts (with anticipated award price ranging from $3.5 million to
$5.5 million depending on NAICS codes)
3. Full and open competitive contracts (with up to 10% price preference for HUB-
Zone businesses)

For More information To apply, complete the electronic application on the HUBZone website at
Find more about HUBZones at www.sba.gov/hubzone. Upon verifying your application, you will be required to submit
www.sba.gov/hubzone. supporting documentation demonstrating that the firm meets the program eligibil-
ity criteria. The HUBZone Program Office will then review your application and render
a decision, usually within 90 days but times vary based on the circumstances of each
applicant.
The District of Columbia has its own branch of HUBZone, HUBDC, which aims to
maximize the District’s participation in the federal program. As part of the HUBZone
Outreach initiative, HUBDC hosts a Boot Camp event aimed at encouraging busi-
nesses to join the program and manage their application.
8(a) Business Development Program

8(a) is a business assistance program specifically designed to help disadvantaged small
businesses in entering the economic main stream. The program also aims to assist
entrepreneurs in gaining access to federal and private procurement markets. Eligible
businesses must be owned or controlled 51% by U.S. citizens of good character who
are socially or economically disadvantaged. The program lasts for nine years, with two
phases: a four-year developmental stage and a five-year transition stage.
Benefits of the 8(a) Program:

• Participants can receive sole-source contracts, up to a ceiling of $4 million for
goods and services and $6.5 million for manufacturing. The program encour-
ages businesses to build their competitive and institutional know-how, and also
encourages them to participate in competitive acquisitions.
• Firms are also able to form joint ventures and teams to bid on contracts. This
enhances the ability of 8(a) firms to perform larger prime contracts and overcome
the effects of contract bundling.
• Participants may take advantage of specialized business training, counseling,
market assistance, and high-level executive development provided by the SBA
and their resource partners.
8(a) firms are monitored through annual reviews, business planning, and systematic
evaluations, in order to ensure participants are on track to accomplish the goals and
meet the requirements of the program.
The 8(a) Business program includes a Mentor-Protégé Program, which pairs disadvan-
taged businesses with successful companies, many of whom have graduated from the
8(a) program themselves. The aim is for mentors to teach protégés the ins and outs
of government contracting; further collaborations are possible through technical and
managerial assistance, financial assistance in the form of equity or loans, and col-
laboration in joint-venture competition for contracts. Mentors can own equity interest
of up to 40% in a protégé firm to help it raise capital. Eligible protégés must meet
the following requirements:
• Business must be in the developmental stage of the program

• Have never received an 8(a) contract
• Be less than half the size standard for a small business, based on its primary
NAICS code

• Be in good standing in the 8(a) Development program and be current with all
reporting requirements
Federal Office of Small and Disadvantaged Business

Utilization (OSDBU)
The OSDBU is a council of small business program officials who work to increase the
number of small businesses awarded government contracts. The council advocates for
best-practice policies within the ranks of those who implement and execute gov-
ernment programs, and ensures that all agencies abide by policies that promote small
business concerns. The OSDBU includes members from 35 federal agencies. Officials
meet informally once a month to discuss small business interests and long-term goals,
in conjunction with SBA officials.
Certificate of Competency Program (COC)

The COC program seeks to empower small businesses in the contracting process.
In the event that a small business is the low bidder on a government contract but is
denied because a contracting officer decides that the firm would be unable to fulfill the
contract requirements, the COC program allows the small business to appeal this
determination. SBA industrial and financial specialists then conduct a thorough review
of the firm’s capabilities; credit ratings, past performance, management capabilities and
schedules, and prospects for obtaining needed financial help or equipment are all con-
sidered. If the small business is found to be adequate, the government is required to
award them the contract. This process can be initiated by the business or the SBA itself.
Procurement Center Representatives (PCRs)

Located at various SBA area offices, these representatives help assist small busi-
nesses in obtaining federal contracts by initiating small business set-asides, reserving
procurement for competition among small business firms, providing small business
sources to federal buying activities, and counseling small firms. For more information
contact your local PCR office:
Washington DC Metropolitan Area
409 3rd Street, SW | Washington DC 20416
202.205.7341 (t) | 202.481.4547 (f) | www.sba.gov
DC Government Contracting
Solicitation/Application WDCEP Tip
Follow these three steps to earn DC government contracts: DSLBD & OCP conduct monthly work-
shops on government procurement
1. In order to apply for contract opportunities (or solicitations), a business must to assist small businesses in learning
register as a vendor with the Office of Contracting and Procurement (OCP). OCP about contracting opportunities. For
more information please contact OCP
advertises its solicitation notices in print publications and on its website.
at 202.727.0252.
Businesses can register and apply for contracts at:
441 4th Street, NW | Suite 700S | Washington, DC 20001
202.727.0252 | www.ocp.dc.gov
2. The Office of Contracting and Procurement (OCP) works in partnership with the
Department of Small and Local Business Development (DSLBD) and the business

community to develop meaningful programs to benefit business owners and to

promote economic development. One such program is the DC Supply Schedule
Program (DCSS), the District’s multiple award schedule procurement program for
providing commercial products and services to District government agencies.
The program is similar to the General Services Administration (GSA) multiple
award program.
Only Certified Business Enterprises (CBEs) are eligible to apply for the DCSS.
Currently, there are sixteen (16) schedules that are open, and there are ap-
proximately 170 contracts on the DCSS. To view DCSS contracts, please visit
www.ocp.dc.gov, click on “Contract Awards” under Vendor Support Center.
3. Once you have a business registration and a CBE designation, log on to the
Office of Contracting and Procurement (OCP) website to obtain a list of DCSS
opportunities for solicitation/application at www.ocp.dc.gov.
To be eligible for an award on the DCSS, you must be current with taxes for both the
Department of Employment Services (DOES) and Office of Tax & Revenue.
Benefits of becoming a Certified Business Enterprise (CBE) Certification

District Certified Business The Department of Small and Local Business Development (DSLBD) evaluates busi-
Entity (CBE)
nesses headquartered in the District to determine their eligibility to become Certified
• Bid and proposal preferences
Business Enterprises (CBE).
• Free training and education pro-
grams The Government of the District of Columbia directs spending to CBEs, contributing
• Advocacy and assistance to job creation and the District’s tax base, strengthening the local economy. The CBE
• Business opportunity alerts program provides contracting preference to certified businesses, maximizing their
ability to compete for District government contract opportunities. Businesses may be
certified in any of the certification categories listed below; however, only a maximum
of 12 points can be applied toward any contract award.
In evaluating requests for bids (RFB) or requests for proposals (RFP), contracting
personnel apply a percentage reduction or point preference according to the CBE
designation and procurement type.
Applicants are eligible for certification in the following categories:
WDCEP Tip Local Business Enterprise (LBE): 2 Points—2% reduction

All new businesses seeking certification A LBE is a business whose principal office is located in the District of Columbia, licensed
with the Department of Small and Local pursuant to Chapter 28 of Title 47 of the District of Columbia Official Code and
Business Development must attend subject to the tax levied under Chapter 18 of Title 47 of the District of Columbia Official
mandatory pre-certification orienta-
Code, or is a business enterprise identified in paragraph 47-1808.01 (1) through (5) of
tions. Contact DSLBD at 202.727.3900.
the District of Columbia Official Code, and more than 50% of the business is owned by
residents of the District.
The chief executive officer and highest level managerial employees of the business
enterprise must maintain their offices and perform their managerial functions in the
District.
In addition, a LBE must meet one of the four following criteria:

• More than 50% of the assets of the business enterprise, excluding bank accounts, DC Official Code
are located in the District; or The DC Official Code, a compilation of
the laws in the District of Columbia, can
• More than 50% of the employees of the business enterprise are residents in the
be viewed online at: www.dccouncil.
District; or
washington.dc.us/legislation.
• The owners of more than 50% of the business enterprise are residents in the
District; or
• More than 50% of total sales or other revenue is derived from transactions of the
business enterprise in the District
Small Business Enterprise (SBE): 3 points — 3% reduction

A SBE is a local business enterprise that is independently owned, operated, and
controlled.
A SBE must meet the U.S. Small Business Administration’s definition of a small busi-
ness concern under the Small Business Act or have average annual gross receipts
of between $5 million and $300 million (based on industry type) for the three years
preceding certification.
Disadvantaged Business Enterprise (DBE): 2 Points — 2% reduction

A DBE is a local business enterprise that is more than 50% operated, owned, and
controlled by socially and economically disadvantaged individuals. For the purpose of
this program, socially disadvantaged individuals are those who clearly demonstrate that
they have reason to believe they have been subjected to prejudice or bias because of
their identity as members of a group without regard to their qualifications. An economi-
cally disadvantaged individual is one whose ability to compete in the free enterprise
system has been impaired due to diminished capital and business redlining (discriminat-
ed against by refusal for grant loans, leases, and insurance).
Other requirements apply for the business enterprises affiliated with other business enter-
prises through common ownership, management, or control. To qualify, you must submit:
• A letter that demonstrates how the owner or owners of more than 50% of the
business interest is/are socially and economically disadvantaged as described in
this section
• Personal income tax return
• Personal financial statement (signed and notarized in the District of Columbia)
The owner or owners claiming to be economically disadvantaged must demonstrate

that his or her net worth, excluding the value of his or her primary residence and the
value of his or her ownership in the CBE, is less than $1 million.
Resident Owner Business (ROB): 5 Points — 5% reduction

ROB certification is available for a business enterprise that is owned by an individual
who is—or a majority number of individuals who are—subject to personal income tax
in the District of Columbia.
Longtime Resident Business (LRB): 10 Points —10% reduction

LRB is a business with continuous eligibility for certification as a Local Business En-
terprise (LBE) for 20 consecutive years, or as a Small Business Enterprise (SBE) for 15
consecutive years.

Development Enterprise Zone: 2 points — 2% reduction

A business enterprise must be located in an economic development zone designated
by the mayor and approved by the DC Council to be eligible for approval in this
category.
Veteran Owned Business (VOB): 2 points — 2% reduction

A VOB is a local business enterprise that meets the definition of a small business
enterprise and is not less than 51% owned and operated by one or more veterans (as
defined in 38 U.S.C.101 (2)).
A veteran is a person who actively served in the military, naval, or air service, and
who was discharged or released therefore under conditions other than dishonorable.
In the case of any publicly owned business, not less than 51% of the stock of which is
owned by one or more veterans; veterans must control the management and daily
operations of the business enterprise.
Local Manufacturing Business (LMB): 2 points — 2% reduction

An LMB is a local business enterprise that makes a product through a process involv-
ing raw materials, components, or assemblies, usually on a large scale with different
operations divided among different workers. An LMB also has a principal location
of manufacturing in the District of Columbia and annual revenue of $2 million or
more in the manufactured product. Check with the Department of Small and Local
Business Development (DSLBD) for more information.
DSLBD | 202.727.3900 | www.dslbd.dc.gov
interact with the WDCEP

learn • Development information • Business Development seminarsInteract


Small Business Resource Center (SBRC) WDCEP Tip

The Small Business Resource Center (SBRC), a partnership between the Department SBRC services are by appointment only.
To register for SBRC offerings, please
of Small and Local Business Development (DSLBD) and the Department of Con-
visit dcbiz.ecenterdirect.com, or visit
sumer and Regulatory Affairs (DCRA), provides District-based small businesses and
these websites:
entrepreneurs with training, consulting and technical assistance. Service offerings
include one-on-one technical assistance; pro bono legal services; access to comput- • SBRC | dcbiz.ecenterdirect.com
ers and business planning software; workshops on starting, managing, financing, • DSLBD | dslbd.dc.gov
and growing a business; and assistance navigating regulatory issues. The SBRC also • DCRA | dcra.dc.gov
provides regular updates about small business opportunities and referrals to other
small business resource providers in the area.
Small Business Resource Center at

Department of Small and Local Business Development
441 4th Street, NW | Suite 970N | Washington, DC 20019
202.727.3900

Department of Consumer and Regulatory Affairs
1100 4th Street, SW | 2nd Floor | Washington, DC 20024
202.442.8170
ExportDC
ExportDC is a new initiative launched by the DC Department of Small and Local Busi- For More Information
ness Development (DSLBD) designed to increase the number of DC small businesses To learn more about ExportDC, visit
DSLBD’s ExportDC and agency web-
that export, grow the dollar value of exports from District businesses, and coordinate
sites:
trade missions for qualified District-based businesses.
• ExportDC | dslbd.dc.gov/ExportDC
ExportDC has partnered with the U.S. Small Business Administration (SBA) through the
• DSLBD | dslbd.dc.gov
State Trade and Export Promotion (STEP) grant, a three-year pilot program launched by
• U.S. Small Business Administration |
the President’s Small Business Jobs Act. In addition to the SBA, ExportDC is partnering
sba.gov/step
with regional state export promotion agencies, and the DC Chamber of Commerce
Foundation to provide comprehensive market intelligence, technical assistance, and
trade advisory and export finance services to District businesses.
To be eligible for ExportDC support, participants must have a principal office and
business registration in the District of Columbia. To be eligible for STEP-funded
ExportDC support, participants must also:
• Meet the SBA small business size standard(s) for the firm’s industry classification
• Be currently exporting, and/or have the capacity to export to new international
markets
• Sell a product and/or service that is export ready

DC Food Trucks have become popular and successful due in large part to the use of social media marketing.
Marketing Your
11
Business
What is Marketing, How to Create a Marketing Plan, Social Media
Contributors: U.S. Small Business Administration | DC Small Business Development Center
In order to successfully grow your business, you need

to attract and retain a large base of satisfied customers.
An effective marketing program can help you achieve
this goal. Many think marketing is just advertising and
promotions, but it comprises the entire process compa-
nies use to maintain their customer base. A successful
marketing program can be advantageous for your busi-
ness to promote awareness of your products and build
strong customer relationships. WDCEP on YouTube
Search Marketing Your Business
at www.youtube.com/wdcep1495
What Is Marketing?
The American Marketing Association (AMA) defines marketing as “the process of
planning and executing the conception, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy individual and organizational
objectives.” Marketing is the area of business that involves:
• The determination of customer needs/problems

• The development and offering of tailored services and/or products that have
been developed to meet those needs
Marketing Your Business
• Capturing customers’ perceived value of product/service through optimal pricing

strategies
• The development and implementation of the promotional activities that are most
Marketing Plan likely to reach a business’ target market and stimulate purchase
Outline Snapshot • Identifying the ideal point of contact for customers to access a business’ prod-
1. Executive Summary ucts and services
2. Situation Analysis
Marketing activities are numerous and varied. They include everything necessary
• Industry Analysis
to get a product off of a sketch pad and into the hands of consumers. Marketing
• Company Analysis
includes activities such as:
• Customer Analysis
• Designing a product to appear desirable to consumers
• Competitor Analysis
• Performing market research and pricing
• Collaborators
• Promoting the product through public relations, advertising, marketing commu-
• Keys to Success
nications, and sales and distribution
3. Marketing Strategy
• Marketing Objectives Marketing takes time, money, and a lot of preparation. One of the best ways to
• Financial Objectives undertake marketing for your business is to develop a solid marketing plan. A strong
marketing plan will ensure you’re not only sticking to your schedule, but that you’re
• Target Market
spending your marketing funds wisely and appropriately.
• Market Segmentation
• Positioning Strategy
How To Create A Marketing Plan
• Marketing Mix
A marketing plan is a business tool that outlines how a company will attract, acquire
4. Financials and retain its target market. An executable and effective marketing plan consists of
• Break-even Analysis the following:
• Sales Forecast
• Identifies the best customer profile (i.e. those individuals who are most willing
• Marketing Expense Forecast
and able to purchase your products)
5. Controls
• Identifies a business’ optimal niche market (area of specialization)
• Implementation Milestones
• Links sales and profit goals to marketing efforts
• Marketing Organization
• Provides an action plan for accomplishing sales and marketing goals (e.g. brand
• Contingency Planning awareness, increase in market share, product line extensions etc.)
• Can substantially increase sales and company value
Conducting Market Research

Successful marketing requires timely and relevant market information. An inexpensive
research program, based on questionnaires given to current or prospective customers,
can often uncover dissatisfaction or possible new products and services. Market research
will also identify trends that affect sales and profitability. Population shifts, legal develop-
ments, and the local economic situation should be monitored to quickly identify problems
and opportunities. It is also important to keep up with competitors’ market strategies.
Conduct Research:
• Products/Services
• Industry size ($) and projections
• Industry trends
• Major players/competitors

• Market share
• Target market characteristics, size, willingness and ability to pay
Research Sources:
• Primary research: surveys, interviews, focus groups, suggestion cards, competi- WDCEP Tip
tive assessment, etc. Washington, DC Small Business
Development Center works with their
• Secondary research: DC Small Business Development Center, U.S. Census Bu-
resource partners, other SBDCs, a mar-
reau, FINTEL, Bureau of Labor Statistics, EDGAR, MEDSEEK, IBIS World, public ket research service, and the U.S. Small
libraries, etc. Business Administration to offer free
market research assistance. For more
Creating a Marketing Strategy information, contact the Washington,
A marketing strategy identifies customer groups that a particular business can better DC Small Business Development Center
at 202.806.1550.
serve than its target competitors, and tailors product offerings, prices, distribution,
promotional efforts, and services toward those segments. Ideally, the strategy should
address unmet customer needs that offer adequate potential profitability. A good
strategy helps a business focus on the target markets it can serve best.
Target Marketing
Most small businesses don’t have unlimited resources to devote to marketing; however,
you can still see excellent returns while sticking to your budget if you focus on target mar-
keting. By concentrating your efforts on one or a few key market segments, you’ll reap the
most from small investments. There are two methods used to segment a market:
1. Geographical segmentation: Specializing in serving the needs of customers in a

particular geographical area.
2. Customer segmentation: Identifying those people most likely to buy the product
or service and targeting those groups.
Managing the Market Mix — The Four Ps

Every marketing program contains four key components:
1. Products and Services: Product strategies include concentrating on a narrow

product line, developing a highly specialized product or service or providing a
product-service package containing unusually high-quality service.
2. Promotion: Promotion strategies focus on advertising and direct customer
interaction. Good salesmanship is essential for small businesses because of their
limited advertising budgets. Online marketing is a cheap, quick, and easy way to
ensure that your business and product receive high visibility.
3. Price: When it comes to maximizing total revenue, the right price is crucial.
Generally, higher prices mean lower volume and vice-versa; however, small busi-
nesses can often command higher prices because of their personalized service.
4. Place/Distribution: The manufacturer and wholesaler must decide how to distribute
their products. Working through established distributors or manufacturers’ agents
is generally easiest for small manufacturers. Small retailers should consider cost and
traffic flow in site selection, especially since advertising and rent can be reciprocal: a
low-cost, low-traffic location means spending more on advertising to build traffic.
The nature of the product or service is also important in citing decisions. If purchases
are based largely on impulse, then high-traffic and visibility are critical. On the other

Marketing Your Business
hand, location is less of a concern for products or services that customers are willing
to go out of their way to find. The Internet makes it easy for people to obtain goods
WDCEP Tip
For more information or to obtain free from anywhere in the world, so if you’re worried about reaching a certain market, sell-
one-on-one consultation on developing ing your product online may do wonders for your business.
your marketing plan, contact the Wash-
ington, DC Small Business Develop- Measure Your Success
ment Center at 202.806.1550.
After implementing a marketing program, entrepreneurs must evaluate their perfor-
mance. Every program should have performance standards to compare with actual
results. Researching industry norms and past performances will help to develop ap-
propriate standards.
Entrepreneurs should audit their company’s performance at least quarterly. The key
questions to accomplish this are:
• Is the company doing all it can to be customer-oriented?

• Do employees ensure the customers are satisfied and leave wanting to come back?
• Is it easy for the customer to find what he or she wants at a competitive price?
Keep an Eye on Return on Investment

It is important to create a plan to measure your spending and return on investment.
Consider what impact certain marketing activities have had on your revenues during
a fixed period, such as a business quarter, compared to another time period when you
focused your efforts on other tactics. Consider the tactics that worked as well as those
that didn’t work. You don’t have to cut the tactics that didn’t work, but you should
assess whether you need to give them more time to work or whether the funds are best
redirected elsewhere. Some tactics may be hard to measure but are impactful for your
target audience, such as print collateral (e.g. brochures, sales sheets, etc.).
Marketing plans should be maintained on an annual basis, at a minimum. But if you

launch a new product or service, take time to revisit your original plan or develop a
separate campaign plan that you can add to your main plan as an addendum.
Integrating Social Media into your

marketing plan
Small businesses are increasingly taking advantage of popular social media channels
to market their businesses. According to the Social Media Examiner’s 2012 Industry
Report, the top benefits reported by businesses are “increased exposure, increased
traffic, provided marketplace insight, generated leads, developed a loyal fan base,
improved search rankings, grew business partnerships, reduced marketing expenses,
and improved sales.”
The top five social media networks used by businesses are:

1. Facebook | www.facebook.com
2. Twitter | www.twitter.com
3. LinkedIn | www.linkedin.com
4. Blogs
5. YouTube/video sharing

Steps to Create a Social Media Strategy

1. Understand your audience. What social media platforms does your target audi-
ence use?
2. Define your goals. Building awareness, customer retention, improved search
engine rankings, reputation management, etc.
3. Choose your metrics. Reach, sharing behavior, monetization.
4. Open accounts on the platforms your audience uses.
5. Listen to what your audience is saying on those platforms.
6. Respond to their concerns.
7. Provide content that they value.
8. Measure the results.
9. Repeat steps 1 through 8.
Social Media Marketing Resources

Social Media Examiner,a free online magazine that is designed to help businesses
discover how to best use social media tools like Facebook, Twitter, and LinkedIn to
find leads, increase sales and generate more brand awareness. View their Getting
Started with Social Media: A Resource Guide webpage for more information on how
to effectively integrate social media into your marketing plan.
www.socialmediaexaminer.com/getting-started/
2012 Social Media Marketing Industry Reportis an annual report by Social Media
Examiner that examines how marketers and businesses are using social media to
grow their businesses.
www.socialmediaexaminer.com
Additional Resources
Washington, DC Small Business Development Center (DC SBDC),is an outreach
program of Howard University, working in partnership with the U.S. Small Business
Administration (SBA), other District of Columbia universities, and community organi-
zations, to provide free management and technical assistance and affordable training
in all phases of business development to District of Columbia based small businesses.
www.dcsbdc.org
U.S. Small Business Administration| www.sba.gov
SBDCNet | www.sbdcnet.org
The Washington, DC Women’s Business Center| www.dcwbc.org

LivingSocial is one of the District’s most successful tech companies; established in 2007 with only four employees, in five years they
have expanded in the District and into hundreds of markets internationally and now employ approximately 1,000 people in DC.
Technology Company
12
Resource Guide
Starting, Growing, or Relocating a Science & Technology-Based Enterprise
Contributors: Charlie Kiser, Sellstrategy
Fifteen years ago, Silicon Valley was the natural choice for
a motivated entrepreneur wanting to locate a business
within arm’s reach of seasoned founders, angel investors,
and venture capitalists. The dotcom crash served to gal-
vanize this inclination when it curtailed DC’s (and many
other cities’) burgeoning tech scene. In recent years, how-
ever, DC has re-emerged as a global hub of innovation1.
Though measuring the vibrancy of a tech scene is difficult, Scott Heiferman, CEO of Meet-
up, has come up with an interesting metric. Measured by global tech Meetup RSVP’s, DC WDCEP on YouTube
is the 10th Fastest Growing Tech City and the 4th Biggest Tech City in the world . Though 2 Search DC Tech Companies at
not a rigorous statistical study, those engaged in the DC tech community understand that www.youtube.com/wdcep1495
the Meetup data reflects a very real energy and provides the proof that DC has joined
that cast on the global innovation stage.
DC has endowments that provide a unique ecosystem and opportunities for an en-
trepreneur: the federal government is increasingly interested in efficiency-enhancing
1 Flook, Bill. “After years of hibernation, D.C.’s tech scene is finally re-emerging.” Washington Business
Journal. American City Business Journals, 22 April 2011. Web. 19 March 2012.
2 Warzel, Charlie. “Boom. DC Tech Meetup is the 4th Most Engaged In The World!” InTheCapital. Streetwise
Media, 9 Feb. 2012. Web. 29 March 2012.
Technology Company Resource Guide
technology, a resilient economy led by the public sector, travel, tourism, and a talented
labor force. Moreover, DC has the ingredients to support a robust community of both
seasoned and young innovators. According to recent report by the State Science and
Technology Institute3, a community must provide access to the following resources in
order to cultivate and sustain an entrepreneurial environment4.
• Science & Technology

• Risk Capital
• Facilities (Incubators, Accelerators, and Co-working Spaces)
• Social Networks
• Know-How
The following sections highlight DC’s ability to provide each of these critical resources
while simultaneously presenting the technology community with information to locate
and grow technology-based businesses in DC.
Science & Technology

A sustainable innovation economy requires access to knowledge and technology
generation. Universities and nonprofit research institutions are recognized sources of
new technologies and the District is replete with both5.
DC Technology Transfer Offices

Strong research and development institutions are the foundation of a technology-
based economy. These knowledge creators drive technological progress and, therefore,
economic growth6. According to the National Science Foundation’s National Center for
Science and Engineering Statistics, the combined R&D expenditures for DC universities
were $325.7 million in 20097. The mechanism to transfer the knowledge created in our
universities (i.e. intellectual property) is their respective technology transfer offices:
The Catholic University of America

Office of Technology Transfer
213 McMahon Hall | 620 Michigan Avenue | Washington, DC 20064
202.319.5218 (t) | 202.319.4495 (f) | CUA-techtransfer@cua.edu | ott.cua.edu
The George Washington University

Office of Health Research, Compliance and Technology Transfer
Ross Hall | Suite 712 | 2300 Eye Street, NW | Washington, DC 20037
202.994.2995 | www.gwu.edu
3 “A Resource Guide for Technology-based Economic Development.” The State Science and Technology
Institute, Aug. 2006. Web. 8 March 2012.
4 “A Resource Guide for Technology-based Economic Development.” Page 32. The State Science and Tech-
nology Institute, Aug. 2006. Web. 8 March 2012.
7 “Academic Research and Development Expenditures: Fiscal Year 2009.” National Center for Science and
Engineering Statistics, July 2011. Web. 20 Feb. 2012.

The George Washington University technology transfer office is housed under the
Office of Entrepreneurship, which has robust programming for entrepreneurs. Though
much of the resources are available only to GWU students, many of the events are
open to public participation such as pitch practice events and business plan competitions.
www.gwu.edu/discover
Georgetown University
Office of Technology Commercialization
PO Box 571408 | Harris Building | Suite 1500
3300 Whitehaven Street, NW | Washington, DC 20007
202.687.7424 (t) | 202.687.3111 (f) | otc.georgetown.edu
The Georgetown University McDonough School of Business houses the Georgetown

Entrepreneurship Initiative, which hosts and sponsors events throughout the year that
are open to the public.
eship.georgetown.edu
Howard University
Intellectual Property Center
2400 Sixth Street NW | Suite 321 | Washington, DC 20059
202.806.2650 (t) | 202.806.6357 (f) | contracts@howard.edu | ip.howard.edu
Federal & National Laboratories

The Federal Laboratory Consortium for Technology Transfer
The Federal Laboratory Consortium for Technology Transfer “is the nationwide network
of federal laboratories that provides the forum to develop strategies and opportuni-
ties for linking laboratory mission technologies and expertise with the marketplace”8.
Broadly, the federal laboratories accomplish technology transfer either through direct
licensing of intellectual property created at federal laboratories or through Cooperative
Research & Development Agreements (CRADAs) with private sector firms.
www.federallabs.org
DoD TechMatch
The Department of Defense (DoD) sponsored web-based portal is a resource for both
academia and private industry. DC-based high technology companies can license pat-
ents that have been developed in the approximately 120 DoD labs in the U.S. Addition-
ally, this portal provided access to R&D opportunity through the DoD. These fall into
two categories: DoD R&D needs (defense contracts) and laboratories available for
commercial use.
www.dodtechmatch.com
Additional Resources
The Technology Transfer Society — Washington D.C. Chapter
The Technology Transfer Society holds the Technology Transfer and Innovation Forum,
a monthly meeting “intended to provide critical links and enhanced understanding,
in the unique and vital area of the Nation’s capital, among the diverse communities
concerned with all aspects of the transfer of technology from research to application
8 Federal Laboratory Consortium for Technology Transfer. Federal Laboratory Consortium for Technology
Transfer, n.d. Web. 28 Feb. 2012.

and commercialization”9. Attendees include entrepreneurs, business leaders, venture

capital firms, university technology transfer offices, and TBED organizations. The series
is currently held at 1201 New York Avenue, NW, Suite 430, Washington, DC 20005 (near
Metro Center) and is open to the public.
www.t2sdc.org
Risk Capital
DC tech Incentives Sufficient funding at every level, from angel investment to institutional venture capital,
DC offers several incentives to technolo- must be available and accessible in order to cultivate an ecosystem of technology
gy companies. See Chapter 5: Financial enterprises10. Below is a list of DC-based sources of capital for starting or expanding a
Incentives for more information. science and technology-based business.
Venture Capital
Fortify.vc
Investment Strategy/Current Portfolio: C
urrent portfolio is centered on software,
Internet, and web technologies.
For more information Revolution Growth Fund

For more information visit the websites Investment Strategy/Current Portfolio: C
onsumer-centric, innovative, high-growth,
of DC-based sources of venture capital: high technology companies.
Typical Investment Size: $
25-$50 million, normally lead and largest investor.
• Fortify.vc
fortify.vc
Paladin Capital
• Revolution Growth Fund Fund: Paladin III
revolution.com
Investment Strategy/Current Portfolio: D
ual-use technologies that fit the needs of
• Paladin Capital
Fortune 500 and Federal enterprise (IT, cyber-security, enterprise mobility, and mobile
www.paladincapgroup.com
broadband) and alternative energy.
• Core Capital Partners
www.core-capital.com Core Capital Partners
• The Carlyle Group Investment Strategy/Current Portfolio: “
Core” technologies in IT, communications,
www.carlyle.com digital media, and technology-enabled services arenas.
• The Grosvenor Funds Typical Investment Size: $
2-$5 million initially with an expectation of $5-$12 million in
www.grosvenorfund.com total over the life of investment, lead or partnership investor.
The Carlyle Group

Fund: Carlyle Venture Partners I and II, and Carlyle U.S. Growth Fund III
Investment Strategy/Current Portfolio: E
merging technology companies with a focus
on infrastructure applications like network security and storage, defense technolo-
gies, software, and specialty semiconductors.
Typical Investment Size: E
quity Investments of $20-$75 million in viable businesses
generating up to $300 million in revenue, typically lead investor and will join the com-
pany’s board of directors.
9 Technology Transfer Society Washington Area Chapter. National Technology Transfer Society, n.d. Web. 4
March 2012.

Funding Sources for DC-Based Science

and Technology Businesses1
Potential funding sources are listed for each stage of development • Primary Investment Strategy • Secondary Investment Strategy
Seed Series A: Series B: Viable Speedup

$10K-$500K Startup Business
Product Development, $5.0M +
Patent Filing, Proof-
$500K-$5.0M $5.0M + Significantly expand exist-
Introduction to Market, Marketing, Expanding ing operations to gain a
of-Concept, Business
Revenue Generated, Not Staff, Establish Market large share of the market
Plan Validation, Market
Yet Profitable Analysis
Research
• Revolution LLC:
• The Grosvenor Funds • Paladin Capital Group Revolution Growth
• Charlie A. Kiser: Angel
Investing • Revolution LLC: • Core Capital Partners • Carlyle Group: U.S.
Revolution Venture Growth Fund III
• SBIR/STTR • Revolution LLC:
• Fortify.vc Revolution Growth
• The Grosvenor Funds
• Core Capital Partners
• Paladin Capital Group
Tips for getting Risk Capital2

A cold call is the least successful way of Ownership structure is very important to
approaching an investor. tech startups.
Listed below are the most common ways investors source their Seed and early-stage financing is dominated by equity
partners: financing, which requires your business to offer stock in
exchange for capital. See Chapter 1 for additional details in
• Referrals
ownership structure.
• Networking
• Pitch-Events Increase Your Chances of Getting Funded
Head to the DC Technology Network section on page 102 1. Have an amazing team! Investors like to see cofounders,
and get connected! not individuals.
2. Know the market landscape and your customer base. Is
Make your Pitch Better the market opportunity large enough to interest investors?
1. Establish the market need! Spend enough time on your prod- 3. Show a clear path between startup, growth, and exit.
uct or service to prove why your business has the solution.
4. Know more about your competition than the investor
2. Keep it simple! Not all investors will be experts in your field. does.
3. Don’t try to explain everything. Provide just enough to 5. Show a customer track and some revenue.
entice the investors to seek you out.
6. Investors like experience. Consider this when choosing a
4. Do not use a script; show your passion and “speak” dur- co-founder.
ing your pitch.
7. Do your homework!
5. Include a product demo.
Is the investor a good match for deal size and space (industry
6. Practice! Practice! Practice! and geography)? Is your competition already in their portfolio?
1 Adapted from “Risk Financing for Knowledge-based Enterprises: Mechanisms and Policy Options”, Guy Ben-Ari and Nicholas S. Vonortas (5)
2 Mirzakarimova, Gulnara. Two-Side Brain Interviews, n.d. Web. 15 March 2012.
The Grosvenor Funds

Investment Strategy: G
rosvenor is currently investing its fourth fund targeting early-
stage, IP protected technologies addressing large market opportunities, with an East
Coast geographic focus.
Other Resources
These venture capital trade association groups have unique resources for entrepreneurs:
• Mid-Atlantic Venture Capital Association | www.mava.org
• National Venture Capital Association | www.nvca.org
Angel Investors
Charlie Kiser
Start-Up Capital & Angel Investing
301.325.2440 | sellstrategy@gmail.com | @CharlieKiser
Angel Investment Network

This online platform connects entrepreneurs with international angel investors.
Mid-Atlantic U.S. Branch | www.midatlanticinvestmentnetwork.com
Federal Resources
Small Business Innovation Research (SBIR) & Small Business Technology
Transfer (STTR)
The Federal Small Business Innovation Research (SBIR) and Small Business Technol-
ogy Transfer (STTR) programs are an important source of seed and early-stage capital
for technology startups throughout the U.S. Each year, SBIR and STTR are the source
of more than $2 billion in proof-of-concept and very early-stage funding. According to
the SSTI report, “eleven federal agencies are required to provide the funds by setting
aside 2.5% of their annual extramural R&D budgets for use exclusively by U.S. small
businesses for new product R&D. The program consists of three phases and requires
no repayment, no equity sacrifice, and the small business retains most intellectual
property rights”11.
www.sbir.gov
Incubator, Accelerator, and Co-Working

Facilities
WDCEP Tip With limited resources, another challenge for startups can be identifying and secur-
The National Business Incubator As- ing appropriate and affordable physical space from which to operate. This is typically
sociation (NBIA) is a great resource for provided by incubators, accelerators, and co-working spaces. These facilities do more
entrepreneurs considering an incuba- than just provide office space, however. Entrepreneurs benefit from being in proximity
tion program. More information can be to each other, which facilitates networking, information exchange, and collaboration.
found at www.nbia.org.
Moreover, the most successful facilities will provide access to technical assistance
services, mentors and advisors, and possibly capital12.

The Fort Accelerator WDCEP Tip

fortify.vc | @TheFortvc Need a change of scenery after a long
coding session? Or, maybe you need to
Industry Focus: C
urrent portfolio is centered on software, Internet, and web technologies
arrange an impromptu business meet-
Programming: Six-Month Accelerator Program ing. Check out the DC Wi-Fi Hot Spot
Services: Mentorship from seasoned founders and capitalization Map at wifi.dc.gov to find convenient
access to the web!
GeekEasy Co-working Facility

www.geekeasy.org | @GeekEasyDC
Industry Focus: Mobile or Web Technology
Programming: None
Services: 24/7 access, fixed & virtual work spaces, co-working lounge, event space,
robust network, professional sound recording, test bed resources, and venture capital
investor hours
Affinity Lab Co-working Facility

www.affinitylab.com | @AffinityLab
Industry Focus:Industry Agnostic – Tech Centric
Services: 5
,000 sq. ft. to work, meet, and host; redundant high speed internet, two
conference rooms, 24-7 access, whiteboards/projectors/phone lines/paper shredder,
kitchenette, print/can/copy/fax machine, UPS/FedEx deliveries/mailing address
Programming: Skills courses, seminars, and networking events
CAN’T BEAR TO
Empowering Women To Grow Strong Businesses LOOK AT YOUR
The Washington, DC Women’s Business Center
COMPANY’S
offers: ENERGY BILLS?
Motivating seminars and workshops
Personable one-on-one consultation
Exciting business opportunities
Unique networking events
...to help Women become successful entrepreneurs WE CAN HELP.
We are looking forward to helping you The DC SEU helps District businesses large and small save energy and
money through financial incentives, rebates, and technical assistance
grow your business! for energy efficiency.
The Washington, DC Women’s Business Center To find out how your business can start saving today, contact us toll-
727 15th Street, NW Washington, DC 20005 free at 855-MY-DCSEU.
Phone: 202-393-8307
Email: info@dcwbc.org
DC WBC Operated by:
Website: www.dcwbc.org
202-479-2222 • WWW.DCSEU.COM/MYDCSEU
Endeavor DC Accelerator
endeavordc.com | @startupendeavordc
Industry Focus: C
onsumer Internet & Mobile Companies
Programing: Four-month accelerator program for four to eight companies with a
working prototype and ideally some beta users
Services: Connections to mentors, advisors, funders, and potential business partners;
legal, accounting, creative, and technical support; and a co-working facility
The DC Technology Network

As the knowledge economy is largely based on the transfer of tacit knowledge, network-
ing cannot be overstressed. The obstacles and challenges encountered while launching a
successful business are not easily codified in textbooks. Thus, entrepreneurs learn best
from interacting with others who have encountered similar obstacles. Though they can be
deceptively unstructured, networking events allow entrepreneurs to exchange valuable
information with each other and members of their support community13.
Digital Capital Week (DCWeek)

@dcweek | digitalcapitalweek.org
WDCEP Tip
Please refer to Chapter 5: Financial Social Media Week
Incentives for information on DC Tech @smwwdc | socialmediaweek.org/washingtondc
Incentives for qualified high technology
companies. Wikimania 2012 DC — The International Wikimedia Conference
@wikimania2012 | wikimania.wikimedia.org
DC Entrepreneurship Week
@dcweek | www.dcew.org
Lean Startup Machine

@lean | leanstartupmachine.com
Foster.ly Study Hall

@foster_ly | foster.ly/studyhall
Startup Weekend
@sw_dc | dc.startupweekend.org
DC Tech Meetup
@dctechmeetup | www.meetup.com/DC-Tech-Meetup
Distilled Intelligence 2.0 (Fortify.vc)

@fortifyvc | www.distilledintelligence.com
Startup DC
@startupdc | dc.s.co

Stay Informed — Tech Community News Sources

Tech Cocktail
@techcocktail | techcocktail.com
Proudly Made In DC
@proudlymadeindc | proudlymadeindc.com
Two Side Brain

@twosidebrain | twosidebrain.com
DC Founders.com
@dcfounders | dcfounders.com
Social Matchbox
@socialmatchbox | socialmatchbox.com
TechCrunch
@techcrunch | techcrunch.com
Know-How
Young entrepreneurs and investors covet qualified, experienced entrepreneurs. These indi-
viduals have weathered a few failures on the road to success and are often willing to share
the benefit of their experience by advising new entrepreneurs in a mentorship relationship.
Having an experienced entrepreneurial management team may mean the difference
in whether the startup company receives the investment capital it needs to move forward14.
Mentorship Networks & Services

Washington, DC Economic Partnership Venture Mentoring Program
(Launching January 2013)
202.661.8670 | @wdcep | www.wdcep.com
Springboard Enterprises
@springboardent | www.springboardenterprises.org
Founder Institute:
@founding | fi.co
FounderCorps
@foundercorps | foundercorps.org
Finding Talent
CoFoundersLab
@cofounderslab | www.cofounderslab.com
Startup Riot
@startupriot | startupriot.com

The HIVE, in Anacostia, is one of the many resources DC has to offer entrepreneurs;
it serves as a creative and shared workspace for freelancers and small businesses.
Business Resources
13
The resources below are public initiatives provided by
government agencies and nonprofits. Complete con-
tact information for all of the resources listed can be
found in the quick reference section at the end of this
chapter.
DC Government Agencies
Deputy Mayor’s Office for Planning and Economic
Development
The Office of the Deputy Mayor for Planning and Economic Development (DMPED) is
charged with executing the Mayor’s economic development strategy. The purpose of
the DMPED is to encourage growth and investment across the District of Columbia,
attract and retail high quality retail, provide and preserve affordable housing, connect
residents to meaningful employment opportunities and revitalize its neighborhoods
and waterfronts. The goal of the DMPED is to make the District of Columbia a world-
class, globally competitive city. Programs include:
• Anacostia Waterfront Initiative

• Great Streets
Business Resources
• Neighborhood Revitalization Projects

• Business Attraction and Retention
• Mayor’s Housing Initiatives
• New Communities
202.727.6365 | www.dmped.dc.gov
DC Department of Employment Services

The DC Department of Employment Services (DOES) has a One Stop Business
Resource Center for employers and small business owners to encourage job creation
and economic growth in the District of Columbia. Its services include, but are not
limited to:
• Incubator space providing basic office services and equipment

• Technology support services
• Meeting space
• Assistance with financing and marketing
• Computers and audiovisual equipment

DC Department of Insurance, Securities and Banking

The DC Department of Insurance, Securities and Banking (DISB) efficiently and effectively
regulates most financial services activities in the District of Columbia. The DISB provides
maximum information and regulatory protection to the customers and consumers of
financial services as well as District of Columbia residents, while encouraging the growth
of the financial services business sector in order to increase jobs and tax revenue to the
District of Columbia. The DISB regulates the business of insurance, the securities industry,
the business of banking, trust companies, mortgage lenders and brokers, check cashers,
money transmitters, consumer sales finance companies, money lenders, consumer credit
service organizations and non-bank ATMs that operate in the District. Businesses are
encouraged to contact the Department of Insurance, Securities and Banking to find out
specific financial services licensing requirements.
810 First Street, NE, Suite 701 | Washington, DC 20002
DC Department of Small and Local Business Development

The DC Department of Small and Local Business Development (DSLBD) fosters eco-
nomic growth, development, retention of businesses, and job creation in the District
of Columbia. Among other services, the DSLBD offers small business certification
through its Certified Business Enterprise (CBE) program so that they may better com-
pete for contracting opportunities in the District. A description of the department’s
divisions follows.
The Division of Business Opportunities and Access to Capital

This division provides value added services as an advocate of small and local business
owners. It is responsible for ensuring CBE participation in the procurement process

Business Resources
within the public and private sectors. In addition, the division conducts research and
identifies new avenues of business opportunities and access to capital.
The Division of Certification

This division monitors, reviews, and processes applications for potential CBE certifi-
cation. In addition, it assists in overseeing both District agencies and public/private con-
tractors to ensure that they meet and maintain their obligations to contract with CBEs.
The Division of Training and Education

This division coordinates training and mentoring programs for local businesses. It
provides assessment and identification of business needs and also connections to the
wealth of business assistance organizations in the District. In addition, this division
furnishes small business development, technical assistance, and training at the DSLBD’s
Small Business Resource Center located within the Department of Consumer and
Regulatory Affairs’ offices.
1100 4th Street, SW | Washington, DC 20024 | 202.442.8170
The Division of Commercial Revitalization

This division supports the revitalization of DC’s neighborhood commercial districts and
small businesses by: providing technical and funding assistance in targeted neighbor-
hoods to retain DC businesses; design and improve storefronts and streetscapes;
promoting DC’s business neighborhood districts; and managing the certification,
annual tax assessment projections, and the charter extension process for DC’s Business
Improvement Districts (BIDS).
202.727.3900 | @bizDC | www.dslbd.dc.gov
DC Procurement Technical Assistance Center

The DC Procurement Technical Assistance Center (DC-PTAC) provides eligible entities
with specialized and professional technical assistance to individuals and businesses
seeking to pursue and successfully perform under contracting and subcontracting op-
portunities with the Department of Defense, other federal agencies, and/or state and
local governments.
One Judiciary Square | 441 Fourth Street, NW, Suite 970N | Washington, DC 20001
202.741.0858
DC Office of Contracting and Procurement

The DC Office of Contracting and Procurement (OCP) provides contracting services
to over 60 District agencies so they can deliver quality goods and services in a timely and
cost-effective manner. To begin doing business with the DC government, potential
vendors are invited to use the OCP online vendor registration to view solicitations,
awarded contracts, and business requirements. Bids may be left at the OCP office or,
when appropriate, at the OCP location at the Department of Public Works.
441 4th Street, NW, Suite 700 South | Washington, DC 20001
202.727.0252 | www.ocp.dc.gov
goDCgo Employer Services

goDCgo Employer Services provides complimentary assistance to organizations in DC
to implement and promote commuter benefits programs that are strategically designed
to mutually benefit your organization and our nation’s capital. An initiative of the District

Business Resources
Department of Transportation (DDOT), goDCgo provides employees, residents and

visitors with the education and assistance they need to make more informed choices
about their daily travel. Your organization will work one-on-one with a goDCgo con-
sultant to customize and promote commuter services that benefit both your business’
bottom line and your employees’ well-being.
202.299.2186 | @goDCgo | www.goDCgo.com
Non-Governmental Organizations
WDCEP Tip Washington, DC Economic Partnership
Check out www.wdcep.com for infor- The Washington, DC Economic Partnership (WDCEP) is a public/private partnership dedi-
mation about available locations for cated to facilitating economic development in the District of Columbia. The WDCEP pro-
small businesses, new construction proj-
motes the creation of jobs, growth of tax revenues, attraction and retention of businesses,
ects and neighborhood demographics.
and distribution of community resources for local DC residents and business owners.
The WDCEP offers to entrepreneurs and DC residents
• Site location assistance

• Education seminars
• Networking opportunities
• DC economic development information
202.661.8670 | @wdcep | www.wdcep.com
DC Chamber of Commerce
The DC Chamber of Commerce is a nonprofit organization that advocates the growth
and development of business in the District of Columbia. Since 1938, the Chamber
has nurtured business creation and expansion throughout the city. Its 2,000 plus mem-
bers include small and large local and international businesses and associations.
The Chamber’s primary functions include:

• Improve the climate for business in the District
• Assist businesses in succeeding through education, information and outreach
• Provide networking and procurement opportunities
• Reduce the cost of doing business through regulatory reform
• Advocate for changes in federal and local laws that impact business growth and
development in the District
202.347.7201 | @dcchamber | www.dcchamber.org
U.S. Chamber of Commerce

The U.S. Chamber of Commerce is the world’s largest business federation represent-
ing more than three million businesses of all sizes, sectors and regions. It includes
hundreds of associations, thousands of local chambers and more than 100 American
Chambers of Commerce in 91 countries. The U.S. Chamber offers small business
toolkits to help businesses with hiring, printing and shipping, sales and marketing,
security and start-up assistance.
202.659.6000 | @uschamber | www.uschamber.com

Business Resources
Greater Washington Hispanic Chamber of Commerce

The Greater Washington Hispanic Chamber of Commerce (GWHCC) is a membership
driven organization. The GWHCC supports the economic development of the DC re-
gion by facilitating the success of Latino and other minority-owned businesses through
networking, advocacy and education. Its programs include technical assistance for
Hispanic and other minority owned businesses in the District of Columbia and Arlington
county, bilingual (Spanish) business education and a monthly series of networking events.
202.728.0352 | @GWHCC | www.gwhcc.org
Greater Washington Fashion Chamber of Commerce

The Greater Washington Fashion Chamber of Commerce (GWFCC) is a fashion trade
association that serves the greater DC metropolitan area. Its purpose is to promote
common interests, while simultaneously improving the business conditions of the
greater metro area’s fashion industry. It accomplishes this through advocacy, outreach,
training, technical assistance, marketing and economic development activities that
specifically support its members and the greater fashion community.
202.355.3929 | @GWFCC | www.gwfcc.org
CHAMPS — Capitol Hill Chamber of Commerce

CHAMPS is the Chamber of Commerce for Capitol Hill in the District of Columbia. The
Chamber educates and advocates for Capitol Hill businesses and connects them with
the greater community. Representing over 350 businesses and residents in the Capitol
Hill neighborhood, CHAMPS runs regular local promotions and provides various public-
ity opportunities for its members. CHAMPS has an education program that consists
of lunches, seminars, forums, and gatherings, each of which focuses on a different fac-
et of running a business. In addition, it offers several events that focus on networking,
giving members, non-members, and residents the chance to connect with one another.
As the only business organization on Capitol Hill with the ability to lobby, CHAMPS
has an active Government Affairs Committee that sets policy agendas annually, and
looks out for and represents the voice of Capitol Hill businesses on pending legislation.
202.547.7788 | @caphillchamber | www.capitolhill.org
Service Corps of Retired Executives (SCORE)

The Service Corps of Retired Executives (SCORE) is a nationwide nonprofit volunteer
association with more than 12,000 retired and active small business owners, execu-
tives, and professionals who donate their time to council aspiring and existing small
business owners. As a resource partner of the U.S. Small Business Association, it
provides free counseling and low-cost workshops to small businesses. In 2009, SCORE
helped to create over 20,000 new businesses. The DC Chapter has over 46 members ex-
perienced in owning and operating both small and large businesses in almost every field.
DC Small Business Development Center Network

The Small Business Development Center (DCSBDC) Network promotes the growth,
expansion, innovation, and increased productivity of small business owners in the DC
metropolitan area. Opportunities for small business success are enhanced through the
delivery of training and counseling services and strategic alliances with organizations

Business Resources
and individuals in the field of entrepreneurship. Throughout the year, DCSBDC Net-
work conducts affordable training courses designed for small business owners and
managers in the following areas: business planning, management of a small business,
accounting and financial systems development, marketing, 8(a) certification, interna-
tional business, and more.
Counseling is provided on a pre-scheduled appointment basis. Contact the Lead

Center at Howard University or visit the website to schedule an appointment or ob-
tain information about upcoming training courses and events.
202.806.1550 | @dcsbdc | www.dcsbdc.org

The Washington Area Community Investment Fund, Inc (WACIF) is a 24-year-old
nonprofit community development loan fund. WACIF provides access to capital and
technical assistance services to existing and aspiring entrepreneurs and to nonprofit
organizations in local underserved communities. WACIF’s programs and services
include: Specialized Technical Assistance, the District of Colombia Certified Business
Enterprise Revolving Microloan Fund, Small Business Administration (SBA) Revolving
Microloan Fund, and WACIF’s Access to Capital Loan Fund.
202.529.5505 | @WACIF | www.wacif.org
Minority Business Development Agency (MBDA)

The MBDA Business Center in Washington, DC consults established minority business
enterprises (MBEs) in the National Capitol Region and throughout the United States to
increase their access to contracting opportunities and financing. The Center is operated
by the National Community Reinvestment Coalition (www.ncrc.org) and funded by the
Minority Business Development Agency, U.S. Department of Commerce. The Center is
committed to increasing the economic performance of its MBE client base.
202.464.2304 | @USMBDA | www.mbda.gov
DC Chamber of Commerce: Business Resource Center

The DC Chamber of Commerce Business Resource Center helps emerging and estab-
lished businesses navigate through the processes for business plan review, permits
and certifications. The Center offers support services and training designed to ex-
pand the capacity of small businesses in the DC area.
Small Business Resource Center (SBRC)

The Small Business Resource Center (SBRC), a partnership between the Departments
of Small and Local Business Development (DSLBD) and Consumer and Regulatory
Affairs (DCRA), provides District-based small businesses and entrepreneurs with train-
ing, consulting and technical assistance. Service offerings include one-on-one techni-
cal assistance; pro bono legal services; access to computers and business planning
software; workshops on starting, managing, financing, and growing a business; and
navigating regulatory issues. It also provides regular updates about small business
opportunities and referrals to other small business resource providers in the area.
Services are by appointment only. The SBRC Network of Centers can be found at:

Business Resources

441 4th Street NW, Suite 970N | Washington, D.C. 20019
bizdc.ecenterdirect.com
202.727.3900 | @bizDC | dslbd.dc.gov

Department of Consumer and Regulatory Affairs
1100 4th Street SW, 2nd Floor | Washington, D.C. 20024
bizdc.ecenterdirect.com
202.442.8170 | @DCRA | dcra.dc.gov
District of Columbia Sustainable Energy Utility (DC SEU)

The DC SEU’s Commercial and Institutional Services help businesses and institutions
in the District save energy and money. Through a range of initiatives, the DC SEU
offers financial incentives, technical assistance, and valuable information designed to
help business owners make informed decisions on energy-efficiency measures that
can help their businesses become more sustainable and save energy and money now
and in the future.
855.693.2738 | www.dcseu.com
Neighborhood Resources
Business Improvement Districts (BIDs)
The Department of Small and Local Business Development (DSLBD) manages the
certification, charter extension and annual tax projections for Business Improvement
Districts (BIDs) and Community Improvement Districts (CIDs). These are commercial
areas of the District that collect a “self tax” from property owners, which is used to
provide services and programs that augment city services and address commercial
corridor-wide issues such as cleanliness, safety, parking and transportation manage-
ment, streetscape improvements, promotion, economic development and other
collective business issues.
Adams Morgan BID

The Adams Morgan Partnership Business Improvement District was founded in August,
2005 as a 501 (c)(6) non-profit organization funded through an assessment on commer-
cial property owners who are dedicated to revitalizing Adams Morgan as a cleaner and
safer place to live, work, and play. The Adams Morgan Partnership is led by a 22-mem-
ber Board representing a cross section of Adams Morgan stakeholders. This includes
merchants, tenants, property owners and cultural and nonprofit organizations.
202.997.0783 | @AdamsMorganMS | www.adamsmorganonline.com
Capitol Hill BID

The Capitol Hill Business Improvement District (BID) is a 501(c)(6) led by a 26-member
board representing a cross section of Capitol Hill stakeholders, including merchants,
tenants, property owners, cultural and nonprofit organizations, ex-officio representa-
tives and elected officials. The 81-block area is patrolled by the BID’s Safety Ambassa-
dors which provide pedestrian and visitor information, merchant visits, vehicular assis-
tance, homeless outreach and act as the eyes and ears for the police department. The

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Business Resources
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202.842.3333 | @CapitolHillBID | www.capitolhillbid.org 295
Capitol Riverfront BID

The Capitol Riverfront BID spreads over the area of 500 acres within the Southeast
Corridor of the District. Among the services it provides are Clean Teams and hospital-
ity/safety ambassadors; marketing, branding, and special events; economic develop-
ment; office, retail, and residential attraction; and community building.
202.465.7093 | @CapitolRvrFront | www.capitolriverfront.org
COPYRIGHT © 2001, GRAPHIC CHART & MAP CO. INC.

Downtown DC BID
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Business Resources
the economy and enhance the Downtown experience for all. This special district,
where property owners have agreed to tax themselves to fund services, encompasses
a 138-acre of properties from Massachusetts Avenue on the north to Constitution
Avenue on the South, and from Louisiana Avenue on the east to 16th Street on the
west. As a catalyst, facilitator and thought leader, the Downtown BID promotes pub-
lic/private partnerships to create a remarkable urban environment.
202.638.3232 | @DowntownDCBID | www.downtowndc.org
Georgetown BID
The Georgetown Business Improvement District (BID) is a nonprofit organization
dedicated to protecting and enhancing the accessibility, attractiveness and overall
appeal of Georgetown. Established in 1999 by its property owners and merchants,
the Georgetown BID has more than 1,600 members. The organization is located in
the heart of Georgetown and sets a standard of excellence in preserving his-
toric charm while meeting contemporary needs. From marketing and special events, to
transportation and streetscape, the Georgetown BID contributes to the vitality and
quality of life in Georgetown.
202.298.9222 | @georgetowndc | www.georgetowndc.com
Golden Triangle BID

The Golden Triangle BID is a 43-block area that stretches from the front yard of the
White House to Dupont Circle, encompassing the western section of DC’s Central
Business District and representing approximately 3,000 businesses. The Golden Triangle
BID supplements District of Columbia services by providing maintenance, hospitality,
public safety, promotional programs, as well as capital improvements and advocacy.
The BID’s Ambassador Program comprised of hospitality and maintenance Ambassadors
who provide supplemental services to create a clean, safe and friendly environment.
202.463.3400 | @GoldenTriDC | www.goldentriangledc.com
The NoMa BID

To support the development of the neighborhood, the NoMa Business Improvement
District was approved in March 2007 by the DC Council, and has since supported $1.5
billion in recent private investment, and more than eight million square feet of devel-
opment. This area is transforming into a mixed-use neighborhood of sleek sustain-
able offices, shops, restaurants, apartments, and hotels, with an additional 17.5 million
square feet planned over the next 20 years. The NoMa BID promotes these changes by
providing a clean, safe and friendly environment for businesses, residents and visitors.
202.289.0111 | @nomabid | www.nomabid.org
The Mount Vernon Triangle CID

The Mount Vernon Triangle Community Improvement District was the fifth BID to open its
doors in the city of Washington and is the first to tax commercial and residential buildings.
Comprised of 30 acres (15 city blocks) around New York Avenue, New Jersey Avenue, and
Massachusetts Avenue NW, the MVTCID currently has 1,142 members. It provides ser-
vices to the neighborhood, such as cleaning, landscaping, safety, marketing and planning.
202.216.0511 | @MVTCID | www.mountvernontriangle.org

Business Resources
Community Development Corporations (CDCs)

Community Development Corporations (CDCs) work to revitalize distressed neighbor-
hoods throughout the District of Columbia. CDCs are great resources for understand-
ing neighborhood culture and dynamics and for providing site locations assistance to
your business.

(DSLBD) DC Main Streets
The Department of Small and Local Business Development’s Division of Commercial
Revitalization manages the DC Main Streets program, which fosters retail investment
in the District by providing funding and technical assistance to help communities
retain and recruit businesses, improve commercial properties and streetscapes and
attract consumers to neighborhood commercial districts. This citywide program,
which is based on the National Trust’s Main Street Approach model, builds the capac-
ity of neighborhood partner organizations and residents to sustain community driven
revitalization efforts.
Great Streets
The Great Streets Initiative is a multi-year, multiple-agency effort to transform nine
under-invested corridors into thriving and inviting neighborhood centers using public
actions and tools as needed to leverage private investment. The Office of the Deputy
Mayor for Planning and Economic Development (DMPED) is partnering with the
District Department of Transportation (DDOT) and the DC Office of Planning (OP)
to manage the program. More than $200 million is being invested in new mixed use
development projects, storefront improvements, and transportation, streetscape,
and transit improvements along these corridors. In late January 2008, the District of
Columbia made available $95 million in targeted Tax Increment Financing for neigh-
borhood economic development projects which include over 10,000 square feet of
quality local and national retail.
www.dmped.dc.gov (“Great Street” link) | Great.Streets@dc.gov
New Communities
The New Communities Initiative is a comprehensive, District-led redevelopment
initiative aimed at addressing the physical and human architecture of identified
DC neighborhoods that include: Barry Farm (Ward 8), Lincoln Heights/Richardson
Dwellings (Ward 7), Northwest One (Ward 6) and Park Morton (Ward 1). The Initia-
tive seeks to create healthy mixed-income communities with integrated public
facilities and services that offer families better quality housing, real economic opportunity
and access to human services. The New Communities Initiative is a partnership
between the District’s Office of the Deputy Mayor for Planning and Economic
Development, Office of the City Administrator, Office of Planning, the Department
of Housing and community Development, and the District of Columbia Housing
Authority.
202.442.7600 | @OPinDC | www.planning.dc.gov

Business Resources
Legal Resources
American University Washington College of Law and
Economic Development Law Clinic (CEDLC)
CEDLC provides transactional legal services for client groups engaged in different
kinds of neighborhood-based community development. They represent and help
organized small nonprofits and businesses.
202.274.4147 | @auwcl | www.wcl.american.edu/clinical/community.cfm
The George Washington University (GWU) Small Business

& Community Economic Development Law Clinic (SBCED
Clinic)
The GWU SBCED Clinic provides free start-up legal assistance to selected DC area
small businesses and nonprofit organizations that cannot afford to pay a lawyer.
202.994.7463 | @gwlaw | www.law.gwu.edu/sbced
University of the District of Columbia (UDC) David A. Clarke

School of Law
UDC operates a Small Business Law Center (SBLC) under a grant for the Small Busi-
ness Administration to provide small, disadvantaged businesses with comprehensive
legal services and business consulting to the DC community. This organization of stu-
dent case workers can help with articles of incorporation or partnership agreements,
tax laws, business structure or contracts, etc.
202.274.5122 | @UDCSchoolofLaw | www.law.udc.edu
Utility and Small Business Energy

Efficiency Resources
DC-Net/DC-CAN
As a part of the District of Columbia’s Office of the Chief Technology Officer (OCTO),
DC-Net has expanded to a fiber network of over 350 miles — providing solutions to
over 350 District and federal government agencies, nonprofits, public schools and
universities, health clinics, and public safety entities throughout the District.
The District was awarded a grant to develop the DC-Community Access Network
(DC-CAN) broadband infrastructure project. The DC-CAN infrastructure aims to de-
liver affordable, value-added, middle-mile services to community anchor institutions
in the city’s economically distressed areas, and create points of interconnection for
last-mile service providers delivering affordable broadband access to residents.
501(c)3 nonprofit community anchor institutions that offer health or education services
in the District are eligible for DC-CAN service.
DC-Net offers a full range of state-of-the-art telecommunications products and servic-

es, including: Data (with speeds from 10 Mbps to 10 Gbps); VoIP (using Cisco Systems
and Avaya solutions); Voice Managed Services; Video; Internet; Wireless LAN; Cloud
Services; and Professional Services.
202.715.3800 | dcnet.dc.gov

Business Resources
District Department of the Environment (DDOE)

The Small Business Energy Efficiency Program (SBEEP) provides assistance to quali-
fied District of Columbia for-profit small businesses by identifying and installing
energy efficiency measures.
202.535.2600 | @DDOE_DC | www.ddoe.dc.gov
PEPCO
Pepco, a subsidiary of Pepco Holdings, Inc., provides safe and reliable electric service
to more than 750,000 residential and commercial customers in the District of Colum-
bia and Montgomery and Prince George’s counties in Maryland.
202.872.2000 | @PepcoConnect | www.pepco.com
Verizon
Verizon provides voice, data and video services over intelligent wireless, broadband
and global IP networks for its wireless, residential and business customers. The Veri-
zon Foundation’s mission is to improve education, literacy, family safety and health-
care by supporting Verizon’s commitment to deliver technology that touches life. The
Foundation’s also offers grants for nonprofits that support its core initiatives.
800.256.4646 | @VZSmallBiz | www.verizon.com
Verizon.Foundation@Verizon.com | www.verizonfoundation.org
Washington Gas
Washington Gas, a regulated subsidiary of WGL Holdings, Inc., delivers natural gas
to more than one million residential, commercial and industrial customers throughout
the District of Columbia, and the surrounding region.
703.750.1000 | www.washgas.com
Quick References
DC Government Agencies
District Government Hotline — Mayor’s Call Center
Call 311 | @mayorvincegray | www.dc.gov
Office of the Deputy Mayor for Planning & Economic Development

1350 Pennsylvania Avenue, NW, Suite 317 | Washington, DC 20004
202.727.6365 | www.dmped.dc.gov
Alcoholic Beverage Regulation Administration (ABRA)

1250 U Street, NW, 3rd Floor | Washington, DC 20009
202.442.4423 | @DCGOV_ABRA | www.abra.dc.gov
DC Main Streets (DSLBD reSTORE DC Program)

441 4th Street, NW, Suite 970 North | Washington, DC 20001
202.727.3900 | www.restore.dc.gov
Department of Consumer & Regulatory Affairs (DCRA)

1100 4th Street, SW | Washington, DC 20024

Business Resources
Department of Employment Services (DOES)

District Department of the Environment

1200 First Street, NE, 5th Floor | Washington, DC 20002
202.535.2600 | @DDOE_DC | www.ddoe.dc.gov
Department of Housing and Community Development (DHCD)

1800 Martin Luther King, Jr. Avenue, SE | Washington, DC 20020
202.442.7200 | www.dhcd.dc.gov
Department of Insurance, Securities, and Banking (DISB)

DISB Insurance Bureau | 202.442.7766
DISB Risk Finance Bureau | 202.727.5074
Department of Small & Local Business Development

441 4th Street, NW, Suite 970 North | Washington, DC 20001
Metropolitan Police Department Business Service Division

300 Indiana Avenue, NW | Washington, DC 20001
202.727.8711 | @DCPolice | www.mpdc.dc.gov
Office of Contracting and Procurement (OCP)

441 4th Street, NW, Suite 700 South | Washington, DC 20001
202.727.0252 | @DCGOV_OCP | www.ocp.dc.gov
Office of Enterprise Zone and Revenue Bond Program

1100 4th Street, SW, Suite 500 | Washington, DC 20024
202.727.6365 | @DCStartup | www.dcbiz.dc.gov
Office of Partnerships and Grants Services

300 E Street, NW | Washington, DC 20001
202.727.8900 | @OPGSDC | www.opgd.dc.gov
Office of Planning
1100 4th Street, SW, 4th Floor | Washington, DC 20024
Office of Tax and Revenue Taxpayer Service Center

1101 4th Street, SW, West Building | Washington, DC 20024
202.727.4TAX | @DC_OTR | www.otr.cfo.dc.gov
Office of Unemployment Compensation Tax Division

Department of Employment Services

Business Resources
State Data Center (Office of Planning)

1100 4th Street, SW | Washington, DC 20024
Federal Government Agencies

SBA’s SCORE Program (main office)
740 15th Street, NW, 3rd Floor | Washington, DC 20005
Social Security Administration Offices

2100 M Street NW | Washington, DC 20037
800.772.1213 | @socialsecurity | www.ssa.gov
U.S. Department of Housing and Urban Development

820 1st Street, NE, Suite 300 | Washington, DC 20002
202.275.9200 | @HUDnews | www.hud.gov
U.S. Internal Revenue Service

500 North Capitol Street, NW | Washington, DC 20221
202.874.6748 | @IRSnews | www.irs.gov | 800.829.4933 (toll-free for businesses)
DC Small Business Development Centers (DCSBDC)

DCSBDC at AEDC
1800 Martin Luther King Jr. Ave. SE, Suite 100 | Washington, DC 20020
202.889.5090 | @DCSBDC | www.dcsbdc.org
DCSBDC at Howard University Lead Center

2600 6th Street, NW | Washington, DC 20059
DCSBDC at DC Chamber of Commerce

DCSBDC at DC Chamber of Commerce Business Resource Center

7059 Blair Road, NW, Suite 203 | Washington, DC 20012
202.545.0220 | @DCSBDC
DCSBDC at University of District of Columbia

4340 Connecticut Avenue, NW | Washington, DC 20008
DCSBDC at Howard University GADGET Center

2801 Georgia Avenue, NW | Washington, DC 20008
General Business Support Resources

Washington, DC Economic Partnership
1495 F Street, NW | Washington, DC 20004
202.661.8670 | @WDCEP | www.wdcep.com

Business Resources
CHAMPS—Capitol Hill Chamber of Commerce

P.O. Box 15486 | Washington, DC 20003
202.547.7788 | www.capitolhill.org
DC Building Industry Association (DCBIA)

5100 Wisconsin Avenue, NW, Suite 301 | Washington, DC 20016
202.966.8665 | @dcbianews | www.dcbia.org
DC Chamber of Commerce
Business Resource Center

7059 Blair Road, NW, Suite 203 | Washington, DC 20012
202.727.3900 | @dcchamber | www.brc.dc.gov/gabrc
DC Women’s Business Center

202.393.8307 | www.dcwbc.org
Greater Washington Board of Trade

1725 I Street, NW, Suite 200 | Washington, DC 20006
202.857.5900 | www.bot.org
Greater Washington Fashion Chamber of Commerce

1629 K Street, NW, Suite 300 | Washington, DC 20006
202.355.3929 | @GWFCC | www.gwfcc.org
Greater Washington Hispanic Chamber of Commerce

910 17th Street, NW, Suite 1150 | Washington, DC 20006
202.728.0352 | @GWHCC | www.gwhcc.org
Greater Washington Initiative

1725 I Street, NW, Suite 200 | Washington, DC 20006
202.857.5999 | www.greaterwashington.org
National Association of Minority Contractors

The Ronald Reagan House Office Building, Suite 700
1300 Pennsylvania Avenue, NW | Washington, DC 20004
202.204.3093 | www.namcnational.org
Society of Industrial and Office Realtors

1201 New York Avenue, NW, Suite 350 | Washington, DC 20005
202.449.8200 | @siorglobal | www.sior.com
Washington Area Better Business Bureau

1411 K Street, NW, 10th Floor | Washington, DC 20005
202.393.8000 | @bbb_us | www.dc-easternpa.bbb.org
Washington Area Community Investment Fund Inc.

3624 12th Street, NE | Washington, DC 20017
202.529.5505 | @WACIF | www.wacif.org

DC Neighborhood
Profiles
DC NeighborhooDs
deMographiCs | Walk sCores | Metro CouNts | Maps | photographs
14th & U Streets/MidCity Deanwood Minnesota & Benning
Adams Morgan Downtown DC Mount Pleasant
Anacostia Dupont Circle Mount Vernon Triangle
Barracks Row Fort Totten New York Avenue/

Bladensburg Road
Bellevue/South Capitol Georgetown
NoMa
Brookland Georgia Avenue/
Walter Reed North Capitol
Capitol Riverfront
Glover Park Pennsylvania
Central 14th Street Avenue, SE
Golden Triangle
Chevy Chase/ Petworth
Friendship Heights H Street, NE
Rhode Island
Chinatown Hillcrest/Skyland Avenue, NE
Cleveland Park Howard University/ Shaw
Pleasant Plains
Columbia Heights Southwest Waterfront
Kennedy Street
Congress Heights Takoma

Business Resources
Export/Import Services
Bureau of Industry and Security
202.482.4811 | www.bis.doc.gov
Franchise Resources
International Franchise Association
1501 K Street, NW, Suite 350 | Washington, DC 20005
202.628.8000 | @franchising411 | www.franchise.org
Legal Clinics
American University Washington College of Law
4801 Massachusetts Avenue, NW | Washington, DC 20016
202.274.4147 | @auwcl | www.wcl.american.edu
GWU Small Business & Community Economic Development Clinic

2000 H Street, NW Suite 200 | Washington, DC 20052
202.994.7463 | @gwlaw | www.law.gwu.edu/sbced
University of District of Columbia Law School

4200 Connecticut Avenue, NW | Washington, DC 20008
202.274.7341 | @DCSBDC | www.law.udc.edu
Nonprofit Assistance
American Society of Association Executives
1575 I Street, NW | Washington, DC 20005
202.371.0940 | @asaecenter | www.asaecenter.org
Center for Non-Profit Advancement

1666 K Street NW, Suite 440 | Washington, DC 20006
202.457.0540 | @CenterNonprof | www.nonprofitadvancement.org
Foundation Center
1627 K Street, NW, 3rd Floor | Washington, DC 20006
202.331.1400 | @FCWashington | www.foundationcenter.org/washington
Neighborhood Resources
Business Improvement Districts (BIDs)
Adams Morgan BID
1804 Belmont Street, NW | Washington, DC 20009
202.997.0783 | @AdamsMorganMS | www.adamsmorganonline.org
Capitol Hill BID

30 Massachusetts Avenue, NE | Washington, DC 20002
202.842.3333 | @CapitolHillBID | www.capitolhillbid.org
Capitol Riverfront BID

1100 New Jersey Avenue, SE, Suite 1010 | Washington, DC 20003
202.465.7093 | @CapitolRvrFront | www.capitolriverfront.org

Business Resources
Downtown DC BID
1250 H Street, NW, Suite 1000 | Washington, DC 20005
202.638.3232 | @DowntownDCBID | www.downtowndc.org
Georgetown BID
1000 Potomac Street, NW, Suite 122 | Washington, DC 20007
202.298.9222 | @georgetowndc | www.georgetowndc.com
Golden Triangle BID

1120 Connecticut Avenue, NW Suite 260 | Washington, DC 20036
202.463.3400 | @GoldenTriDC | www.goldentriangledc.com
Mount Vernon Triangle CID

901 4th Street, NW, Washington DC 20001
202.216.0511 | @MVTCID | www.mountvernontriangle.org
NoMa BID
202.289.0111 | @nomabid | www.nomabid.org
Department of Small and Local Business Development DC Main Street Programs

Visit www.restore.dc.gov and click on “DC Main Streets” for descriptions of each
program.
Barracks Row Main Street

733 1/2 8th Street, SE | Washington, DC 20003
202.544.3188 | @BarracksRow | www.barracksrow.org
Congress Heights Main Street

3127 Martin Luther King, Jr Avenue, SE | Washington, DC 20032
@CHMainstreets | www.congressheights.com
Deanwood Heights Main Street

4645 Nannie Helen Burroughs Avenue, NE | Washington, DC 200019
202.621.2288 | www.dhmainstreet.org
Historic Dupont Circle Main Street

9 Dupont Circle, NW | Washington, DC 20036
202.441.1474 | @DupontCirMainSt | www.dupontcircle.biz
H Street Main Street

961 H Street, NE | Washington, DC 20002
202.543.0161 | www.hstreet.org
North Capitol Main Street

P.O. Box 93013 | Washington, DC 20090
202.670.1730 | @NCAPMST | www.NCMSINC.org
Shaw Main Street

202.265.7429 | @shawmainstreets | www.shawmainstreets.org

Business Resources
Community Development Corporations (CDCs)

The following is a partial listing of CDCs. For a complete listing, please visit:
www.brc.dc.gov, under “Community Development.”
Anacostia Economic Development Corporation

1800 Martin Luther King Jr. Avenue, SE, Suite 100 | Washington, DC 20020
202.889.5100 | www.anacostiacdc.com
Development Corporation of Columbia Heights

202.483.4986 | www.dcch.org
Far Southwest/Southeast CDC

3939 South Capitol Street, SW | Washington, DC 20032
202.373.1054
H Street CDC
501 H Street, NE | Washington, DC 20002
202.544.8353 | @HStreetCDC | www.hstreetcdc.org
Latino Economic Development Corporation

1202.588.5102) | @ledcmetro | www.ledcdc.org
MANNA CDC
828 Evarts Street, NE | Washington, DC 20018
202.832.1845 | www.mannadc.org
Marshall Heights CDO

3939 Benning Road, NE | Washington, DC 20019
202.396.1200 | @MHCDO | www.mhcdo.org

It is the mission of the Washington, DC Economic Partnership, a 501(c)3 organization
to promote business opportunities throughout the District of Columbia and to con-
tribute to business retention and attraction activities.
© 2012 Washington, DC Economic Partnership

Washington, DC Economic Partnership v 1495 F Street, NW v Washington, DC 20004 v 202.661.8670 v www.wdcep.com
Your Success Starts Here
OUR MISSION
The Department of Small and Local Business Development (DSLBD) supports the
development, economic growth, and retention of District-based businesses, and
promotes economic development throughout the District’s commercial corridors.
OUR VISION
DSLBD envisions a business environment in which DC businesses are connected in
real-time with local, federal, and global business opportunities; businesses navigate
government quickly, confidently, and effectively; and, every entrepreneur and
business with a great idea and a great plan has the capital to make it happen.

Doing Business in DC Guide

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Doing Business in DC Guide

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DC Doing Business

Vincent C. Gray, Mayor

A resource guide to start or expand your business in Washington, DC

DC Doing Business Guide is a publication of the Washington, DC Economic Partnership.

This publication was funded by a grant from the Department

Business Registration & Licensing . . . . . . 15

Finding Talent & Labor Laws . . . . . . . . . . 47

Starting a Nonprofit Organization . . . . 73

Doing Business with Government . . . . . . 79

Marketing Your Business . . . . . . . . . . . . 89

Technology Company Resource Guide . . . 95

Business Resources . . . . . . . . . . . . . . . 105

“ Small businesses are the economic drivers of the

— Vincent C. Gray, Mayor, District of Columbia

Why Choose DC?

1 US Census Bureau (2010)

4 © 2012 Washington, DC Economic Partnership

Industries and Occupations

5 Washington Metropolitan Area Transit Authority

“ Whether your organization employs five people or

— Victor L. Hoskins, Deputy Mayor for Planning and

Economic Development, District of Columbia

DC Doing Business Guide 2012 5

Whether you are starting a new business or relocating

Business Planning WDCEP on YouTube

The three main sections to any business plan are:

DC Chamber of Commerce: Business Resource Center

8 © 2012 Washington, DC Economic Partnership

Small Business Development Center

Washington Area Community Investment Fund

How accessible is your proposed location?

• Will it be accessible to your potential clients?

Is the price right?

• How much revenue will you require to cover your lease?

Does the site meet your requirements?

Do you want to operate your business from home?

• What amount of savings do you anticipate to have from operating a home-based

DC Doing Business Guide 2012 9

• How will you be able to reach your clients?

Helpful Resources Assistance with Choosing a Location

Brokerage Firms & Real Estate Service Companies

Community Development Corporations

DC Building Industry Association

Department of Small & Local Business Development

Greater Washington Commercial Association of REALTORS®

10 © 2012 Washington, DC Economic Partnership

Learn more at wdcep.com

Sole Proprietorship Disadvantages

• Simple for an existing partnership to become an LLP Disadvantages

Ownership Structure WDCEP Tip

Sole ProprietorshipA business that is owned by a single individual.

Limited PartnershipA business similar to a general partnership, however, one invests

S CorporationA business similar to a General Corporation, with the exception of

NonprofitAn organization that has no owners, gives no income (except salaries/ex-

DC Doing Business Guide 2012 13

The process of obtaining licenses and registrations can

Please visit DCRA’s website to view services offered:

• Registration forms and documents

Visit The Department of • Registered organization search

DC Department of Consumer and Regulatory Affairs

The Licensing Process Step-by-Step

16 © 2012 Washington, DC Economic Partnership

Certain businesses, mostly Basic Business License applicants need to obtain a

Home-Based Properties Pursuant to DCMR Title 11 Zoning Regulations, if you own

— Victor L. Hoskins, Deputy Mayor for Planning and